Northeast Minn. nickel mine developer has major commitment from Tesla

Talon Metals Corp., the company that plans to develop a nickel mine in northeastern Minnesota, has made a major supply deal with Tesla, the electric vehicle maker.

Hubbard Broadcasting sister station WDIO-TV reports that according to Aitkin Representative Dale Lueck, the deal is for the supply and purchase of nickel concentrate for Tesla vehicles to be produced from the Tamarack Nickel Project in Aitkin County.

Lueck told WDIO-TV the contract follows an extensive and detailed period of due diligence performed by Tesla, as well as a negotiations between the parties.

"This is great news for our region of Minnesota," Lueck told WDIO-TV. "It’s a clear indication the project is viable, and will ultimately produce the nickel needed to manufacture batteries for tens of thousands of electric vehicles. The Tamarack Project, as it moves forward, is going to be an integral part of a very positive economy here in this part of Minnesota."

Talon, on Monday, indicated Tesla has committed to purchase 165 million pounds of nickel in concentrate—with an option to negotiate expanding its purchase—representing a portion of the metals projected to be produced from the Tamarack Nickel Project.

The term is for six years, for until the 165 million tons of product has been reached. Talon also indicated it will work with Tesla to optimize nickel concentrate grades and metal recoveries.