- Tesla and Talon Metals (TLO) enter into a supply agreement for nickel concentrate
- This is to be produced from the Tamarack Nickel Project in Aitkin County, Minnesota
- Tesla has agreed to purchase 75,000 metric tonnes (165 million lbs) of nickel in concentrate
- The agreement is for six years or until a total of 75,000 metric tonnes of nickel in concentrate has been produced and delivered to Tesla
- Both have also agreed to share in any additional economics derived from by-products extracted from the nickel concentrate, such as iron and cobalt
- Talon Metals Corp. (TLO) is down 1.64 per cent, trading at C$0.60 at close
Talon Metals Corp. (TLO) has entered into an agreement with Tesla Inc. for the supply and purchase of nickel concentrate.
The nickel is to be produced at the Tamarack Nickel Project in Aitkin County, Minnesota.
The agreement follows an extensive 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,” said Henri van Rooyen, CEO of Talon.
“Talon is excited to support Tesla’s mission to accelerate the transition to renewable energy,” added van Rooyen.
“Responsible sourcing of battery materials has long been a focus for Tesla, and this project has the promise to accelerate the production of sustainable energy products in North America,” said Drew Baglino, SVP of Powertrain and Energy Engineering at Tesla.
Under the terms set out in the agreement, Tesla has committed to purchase 75,000 metric tonnes (165 million lbs) of nickel in concentrate, representing a portion of the metals projected to be produced from the Tamarack Nickel Project.
Tesla also has a preferential right under the agreement to negotiate the purchase of additional nickel concentrate over and above the initial 75,000 metric tonne commitment.
The agreement is for six years or until a total of 75,000 metric tonnes (165 million lbs) of nickel in concentrate has been produced and delivered to Tesla.
Talon will work to achieve commercial production on or before January 1, 2026, at the Tamarack Nickel Project, which may be extended by the agreement of the parties for up to an additional 12 months.
Tesla has a right to terminate the agreement and Talon may elect to sell to other parties.
The purchase price to be paid by Tesla for the nickel in concentrate will be linked to the London Metals Exchange (LME) official cash settlement price for nickel. The parties have also agreed to share in any additional economics derived from by-products extracted from the nickel concentrate, such as iron and cobalt.
Talon is a base metals company in a joint venture with Rio Tinto on the high-grade Tamarack Nickel Project located in central Minnesota.
Talon currently owns a 51 per cent interest in the Tamarack Project and has the right to increase its interest by 9 per cent to 60 per cent.
Talon Metals Corp. (TLO) is down 1.64 per cent, trading at C$0.60 at close.