(RTTNews) - Luxury electric car maker Tesla Inc (TSLA) has signed a nickel supply deal with Talon Metals Corp. (TLO).
Talon Metals will supply nickel concentrate produced from the Tamarack Nickel Project in Aitkin County, Minnesota. The execution of the agreement follows an extensive and detailed due diligence period performed by Tesla and lengthy negotiations between the parties.
"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. Talon is excited to support Tesla's mission to accelerate the transition to renewable energy," said Henri van Rooyen, CEO of Talon.
Tesla plans to buy 75,000 tons of nickel concentrate over six years, as well as smaller amounts of cobalt and iron ore, at London Metals Exchange-listed prices. According to Mininig.com, the deal is worth over $1.5 billion based on current nickel price.
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