Talon Metals, through its subsidiary Talon Nickel (USA), has signed an agreement to supply nickel concentrate to electric vehicle (EV) and clean energy company Tesla.
According to the agreement, Tesla will purchase 75,000 metric tonnes (mt) of nickel concentrate from the Tamarack Nickel Project in Aitkin County, Minnesota, US.
The agreement, which follows the completion of Tesla’s extensive and detailed due diligence period, comes as nickel demand is anticipated to increase over the next decade as EVs go mainstream, according to Reuters.
The deal has a six-year term or until a total of 75,000mt of nickel concentrate is delivered to Tesla.
Furthermore, Tesla has the preferential right to negotiate for additional nickel concentrate above the initial commitment.
Tesla signs deal for first U.S. nickel supply with Talon Metals https://t.co/PB4aeMisEM pic.twitter.com/5JbyLyfLe0
— Reuters (@Reuters) January 11, 2022
Tesla signs deal with Talon Metals for US nickel supply
Talon to supply Tesla with 75,000 mt of nickel in concentrate.
Commercial production expected on or before Jan. 1, 2026.
US base metals company Talon Metals, through its subsidiary Talon Nickel, has signed a deal with US electric vehicle company Tesla to supply nickel concentrate from its Tamarack Nickel project in Minnesota, US, the company said.
The Toronto-listed company, a JV with Rio Tinto on the high-grade Tamarack nickel-copper-cobalt project, will look to supply Tesla, the world’s largest manufacturer of electric vehicles and battery storage systems, with 75,000 mt (165 million lb) of nickel in concentrate, it said late Jan. 10.
The company said the term of the agreement is over six years or until a total of 75,000 mt of nickel in concentrate has been produced and delivered to Tesla, and linked to the London Metals Exchange official cash settlement price for nickel.
The London Metal Exchange three-months spot nickel price was trading at $21,430/mt ($9.72/lb) as of 1025 GMT Jan. 11.
