Tesla secures 6-year nickel concentrate supply from Talon, Rio Tinto JV

Tesla Inc. secured 75,000 tonnes of nickel concentrate over a six-year period from the Tamarack project in Minnesota, which is a joint venture between Talon Metals Corp. and Rio Tinto Group.

Under the agreement, Tesla holds the right to negotiate the purchase of nickel concentrate in excess of the initial commitment of 75,000 tonnes.

The price Tesla will pay for the nickel concentrate will be based on the London Metal Exchange price. Based on prevailing nickel prices, the deal is worth over US$1.5 billion, Mining.com reported Jan. 10.

The deal is hinged on Talon successfully earning a 60% stake in Tamarack and starting commercial production at the project, which Talon aims to achieve on or before Jan. 1, 2026.