Tesla signed a six-year contract to supply 75,000 tons of nickel, with the Tamarak project on the supply side

According to the Financial Associated Press, on Monday, Eastern Time, Tesla announced that it had signed a six-year contract for the supply of 75,000 tons of nickel, which was its first nickel supply agreement in the United States.

Tesla has chosen Talon Metals Corp's Tamarack mine in Minnesota as its supplier side because the company plans to produce nickel in a more environmentally friendly way.

Separately, Tesla announced on Monday that it plans to purchase 75,000 tons of nickel concentrate, as well as a small amount of cobalt and iron ore, from Talon's project in Minnesota over the next six years at the listing price of the London Metal Exchange.

With this purchase, Tesla CEO Elon Musk secured a critical source of nickel for Tesla's battery factories in Texas and Nevada. The Tamarak project, which is allegedly operated by a joint venture between Talon and Rio Tinto, is scheduled to open in 2026.

According to the data, in 2020, Tesla signed an agreement with Piedmont Lithium to supply lithium for its Texas battery factory. But last year, the deal was temporarily terminated due to growing north Carolina's opposition to a proposed lithium-mining project in Piedmont.

It is understood that Tesla is mainly engaged in the design, development, production and sales of high-performance electric vehicles and advanced electric vehicle power system components, and also provides research and development and OEM production services for electric vehicle power systems to third parties. Tesla electric vehicles meet the highest standards in the automotive industry in terms of quality, safety and performance, and provide the most cutting-edge technology such as air upgrades and complete charging solutions; they also reduce the dependence of global transportation on non-renewable energy sources and truly achieve zero emissions. The company also manufactures and sells energy reserve products for domestic, industrial and utility use.

(Proofreading/Andy)