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Tesla Inc. agreed to purchase nickel supplies from miner Talon Metals Corp. as an expected surge in demand spurs automakers to secure access to battery metals and other electric car parts.
Tesla committed to purchase 75,000 metric tons of nickel concentrates produced from Talon’s Tamarack project, with the price linked to the London Metal Exchange’s cash-settlement price for nickel, Talon said in a statement Jan. 10. Tamarack, a nickel, copper and cobalt joint venture between Talon and Rio Tinto Group, is located in Minnesota and isn’t yet in commercial production.
Tesla CEO Elon Musk has repeatedly expressed concern about future supplies of nickel due to challenges in sustainable sourcing, with demand set to skyrocket as the world increasingly moves toward electric vehicles. The agreement with Talon comes less…