- Write by:
-
Tuesday, January 11, 2022 - 13:05:37
-
536 Visit
-
Print
Mining News Pro - Tesla on Monday said it has signed its first US supply deal for nickel, tapping Talon Metals Corp’s Tamarack mine project in Minnesota.
Under the terms of the deal, which Talon (TSX:TLO) said came after “extensive and detailed” due diligence and “lengthy negotiations,” Tesla will buy 75,000 tonnes (165 million pounds) of nickel over six years, with an option to increase the delivered tonnage.
Based on the ruling nickel price the deal is nominally worth more than $1.5 billion. Any iron and cobalt by-products at the proposed mine are also part of the deal. Tamarack is currently the only high-grade development-stage nickel project in the US and is a joint venture between Talon and Rio Tinto.
“The Talon team has taken an innovative approach to the discovery, development and production of battery materials, including to permanently store carbon as part of mine operations and the investigation of the novel extraction of battery materials,” said Drew Baglino, SVP of Powertrain and Energy Engineering at Tesla.
In July Tesla last year signed nickel supply deals with BHP in Australia for an estimated 18,000 tonnes of nickel annually and New Caledonia’s Prony Resources for about 42,000 tonnes of the metal.
“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 is committed to meeting the highest standards of responsible production that is fully traceable and that has the lowest embedded CO2 footprint in the industry,” said Henri van Rooyen, CEO of Talon.
“Rio Tinto is working to support Talon to bring the Tamarack mine into production, as we strengthen our battery materials portfolio. We look forward to seeing it supply Tesla with nickel that is essential for the production of their electric vehicles,” said Rio Tinto Minerals Chief Executive Sinead Kaufman.
Talon needs to start commercial production at Tamarack by the end of 2025, which may be extended by the agreement of the parties for up to 12 months “following which Tesla has a right to terminate the agreement and Talon may elect to sell to other parties.”
Talon, for its part, undertakes to earn a 60% interest in Tamarack, a joint venture with Rio Tinto. Talon already owns 51% with an option to add another 9%. To earn the maximum interest, it must make staged payments totalling $22.5 million in cash and shares to Rio Tinto, spend $10 million on exploration and development, and complete a feasibility study on the project.
The Tamarack project, located 210 km north of Minneapolis and 89 km west of Duluth, is comprised of the Tamarack North and Tamarack South projects, with approximately 31,000 acres of private land and state leases.
Shares in Talon trended lower on the Toronto Stock Exchange on Monday ahead of the announcement and subsequent halt in trading. The company has a market capitalization of C$418 million ($329m).
Short Link:
https://www.miningnews.ir/En/News/618388
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
Iron ore futures prices drifted higher on Thursday as the latest soft data from top consumer China triggered renewed ...
French mining group Eramet said on Wednesday it had reached an agreement with the French government to continue its ...
Rio Tinto said on Wednesday it is teaming up with a global venture studio and start-up investor to back the development ...
Outflows from global physically backed gold exchange traded funds (ETFs) continued for a 10th month in March, but at a ...
Copper jumped to its highest intraday price since January 2023 as the bellwether industrial metal faces rising tighter ...
Australia’s Fortescue said on Monday it would form a joint venture with OCP Group to supply green hydrogen, ammonia and ...
BMO Bank quietly dropped its policy restricting lending to the coal industry in late 2023, helping it avoid being ...
No comments have been posted yet ...