Under the deal, Tesla would buy about half of Tamarack Mine’s projected production.
Talon Metals, the company behind a proposed Minnesota nickel mine, said Monday it has made a major supply deal with Tesla.
The electric vehicle giant has committed to buy 75,000 metric tons of nickel concentrate over six years from Talon’s planned mine in Tamarack, about 50 miles west of Duluth. Tesla would also have rights to go above that amount.
The deal calls for Talon to make “commercially reasonable efforts” to open the mine by Jan. 1, 2026. Nickel is a key ingredient for electric vehicle (EV) batteries. Tesla has been increasingly hammering out deals directly with producers of the metal, as well as other components of lithium-ion batteries.
“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,” Talon’s CEO, Henri van Rooyen, said in a press statement.
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