Tesla signs landmark nickel supply deal with Talon Metals
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Tesla (NASDAQ:TSLA) chooses Talon Metals' (OTCPK:TLOFF) Tamarack mine project in Minnesota for its first U.S. supply deal for nickel to make electric batteries, citing Talon's process it considers relatively environmentally friendly.
Under the deal terms, Tesla agrees to buy at least 75K metric tons, or ~165M lbs., of nickel in concentrate over six years, conditioned upon Talon earning a 60% interest in the Tamarack project; Talon currently owns a 51% interest in Tamarack, with Rio Tinto (NYSE:RIO) owning 49%, and has the right to increase its interest to 60%.

The purchase price for the nickel will be linked to the London Metals Exchange official cash settlement price for nickel.
Three-month delivery nickel (LN1:COM) on the LME has jumped more than 15% over the past year to more than $20.9K per metric ton.
"The Talon team has taken an innovative approach to the discovery, development and production of battery materials, including to permanently store carbon as part of mine operations and the investigation of the novel extraction of battery materials," Tesla says.