Tesla Picks Talon Metals’ Tamarack Mine Project for Nickel Supply Deal

Tesla, an American electric vehicle and clean energy company, has signed its first U.S. nickel supply deal, choosing Talon Metals Corp.’s Tamarack Mine project in Minnesota.

The Tamarack Mine is located in Aitkin County, about 10 miles east of McGregor. Tesla has plans to make the electric vehicle battery metal in a way it considers more environmentally friendly.

Tesla plans to use technology it hopes will allow it to suck carbon dioxide out of the atmosphere and chemically bind it – and thus permanently store it – to rocks inside its Tamarack project. The process, which is still being tested, would effectively let Talon market nickel as carbon neutral.

The deal, announced on Monday, comes as demand for nickel is expected to jump over the next decade as electric vehicles go mainstream. Nickel bolsters energy storage in a battery’s cathode, which in turn extends an electric vehicle’s range.

The deal requires Talon to begin shipping the concentrate before Jan. 1, 2026. Talon has yet to begin the permitting process, which could take years to complete. Talon said it intends on beginning that process in 2022.