(Bloomberg) — Tesla Inc. entered into an agreement to purchase nickel concentrates from miner Talon Metals Corp. as the electric-car maker builds out supply agreements with domestic producers of battery metals.
Tesla committed to purchase 75,000 metric tons of nickel concentrates produced from Talon’s Tamarack project, with the price linked to the London Metals Exchange’s cash-settlement price for nickel, Talon said in a statement Monday. Tamarack, a joint-venture nickel, copper and cobalt project between Talon and Rio Tinto Group, is located in Aitkin County, Minnesota.
“Rio Tinto is working to support Talon to bring the Tamarack mine into production, as we strengthen our battery materials portfolio,” Rio Tinto Minerals Chief Executive Officer Sinead Kaufman said in a statement. “We look forward to seeing it supply Tesla with nickel that is essential for the production of their electric vehicles.”
The announcement comes as the Biden administration pledges investments in U.S. domestic manufacturing and move away from reliance on adversaries for critical inputs. In October, Tesla said higher prices of nickel were having an impact on battery cells.
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