TAMARACK, Minn. ( Associated Press) — A company planning to develop a nickel mine in northeastern Minnesota has struck a major supply deal with electric vehicle maker Tesla.
Tesla has committed to purchase 75,000 metric tons of nickel concentrate from Talon Metals’ planned mine in Tamarack, about 50 miles (80 kilometers) west of Duluth. Talon hopes to open the mine by January 2026, but the permitting process has yet to begin.
Nickel is a major component of electric vehicle batteries.
“This agreement is the beginning of an innovative partnership between Tesla and Talon for responsible production of battery materials directly from the mine to the battery cathode,” Talon CEO Henry van Rooyen said in a statement.
Tesla will claim to produce more than half of the mine’s nickel concentrate, which will be further refined before being used to make batteries, Star Tribune Reported.
Drew Baglino, Tesla’s senior vice president of powertrain and energy engineering, said in a statement, “The Talon team has taken an innovative approach to the discovery, development and production of battery materials, including sustainable carbon as part of mine operations.” Including storing from.
Talon is developing a system that will capture CO2 from the air and permanently deposit it in rock waste from the mine.
“Responsible sourcing of battery materials has long been a focus for Tesla,” Baglino said, “and the project holds promise to accelerate the production of sustainable energy products in North America.”
Tesla’s agreement with Talon is the first agreement for nickel in the United States.