EV maker Tesla Inc. (TSLA) has signed its first ever United States nickel supply deal with Talon Metal Corp. (TLO) owned Tamarack mine project in Minnesota as part of its continued plans of making electric vehicle battery metal in a manner which is more environmentally friendly.
In recent times, the demand for nickel has been in the rise and it’s even expected to jump more over the next decade when electric vehicles become the order of the day. Nickel is preferred due to its ability to boost energy storage in a battery’s cathode further increasing the range of an EV.
Following this supply deal agreement, Tesla secures a major U.S metal source for its battery factories in Texas and Nevada which in turn reduces the company’s supply chain. Last year, Tesla inked similar deals with BHP from Australia and New Caledonia.
“Responsible sourcing of battery materials has long been a focus for Tesla,” said Tesla’s head of energy products engineering team, Drew Baglino.
Tesla is looking forward to purchase 75,000 tonnes of nickel concentrate in the next six years. Currently, there is no nickel refinery in the United States refinery so it’s not clear where Tesla will be refining the nickel.
“Talon is excited to support Tesla’s mission to accelerate the transition to renewable energy,” said Talon’s chief executive officer, Henri van Rooyen.