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Tuesday, 11 January 2022 13:13

Tesla, MN-Based Talon Metals Agree to Terms for U.S. Nickel Supply

Written by Joey Klender, Teslarati

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Tesla has agreed to a nickel supply deal with Talon Metals, a Minnesota-based company, the first U.S. supply of nickel for the electric automaker.

Little-known Talon Metals is traded in the OTC Markets Group and holds a valuation of $332.5 million.

 

Some terms of the deal are not public knowledge, according to Reuters, who initially reported the agreement. However, Tesla will buy 75,000 tonnes of nickel over six years, and Talon will also provide cobalt and iron ore to the electric automaker for its batteries.

 

Additionally, the agreement may be extended “for up to 12 months following which Tesla has a right to terminate the agreement and Talon may elect to sell to other parties.”

 

“This agreement is the start of an innovative partnership between Tesla and Talon for the responsible production of battery materials directly from the mine to the battery cathode," said Talon CEO Henri van Rooyen. "Talon is committed to meeting the highest standards of responsible production that is fully traceable and that has the lowest embedded CO2 footprint in the industry. Talon is excited to support Tesla’s mission to accelerate the transition to renewable energy.”

 

“The Talon team has taken an innovative approach to the discovery, development and production of battery materials, including to permanently store carbon as part of mine operations and the investigation of the novel extraction of battery materials,” said Drew Baglino, senior vice president of powertrain and energy engineering at Tesla. “Responsible sourcing of battery materials has long been a focus for Tesla, and this project has the promise to accelerate the production of sustainable energy products in North America.”

 

In July 2020, Tesla CEO Elon Musk called upon mining companies to supply more nickel.

 

“Well, I’d just like to reemphasize, any mining companies out there, please mine more nickel, OK?” Musk asked. “Wherever you are in the world, please mine more nickel, and don’t wait for nickel to go back to some long---some high point that you experienced some five years ago or whatever. Go for efficiency, as environmentally friendly, nickel mining at high volume. Tesla will give you a giant contract for a long period of time if you...


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