Tesla makes deal with proposed mining project in Aitkin County
TAMARACK, MN (CBS 3 Duluth) - Talon Metals has entered into an agreement with Tesla for the supply and purchase of nickel concentrate.
The product will be produced from the Tamarack Nickel Project which is in Tamarack, Minnesota in Aitkin County.
The deal involves the supply and purchase of nickel concentrate for Tesla vehicles.
In a statement Monday, State Rep. Dale Lueck (R-Aitkin) celebrated the deal.
“This is great news for our region of Minnesota,” Lueck said.”It’s a clear indication the project is viable, and will ultimately produce the nickel needed to manufacture batteries for 10s 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.”
According to Talon Metals, Tesla has committed to purchase 165 million pounds of nickel concentrate. The term is for six years, or until the production amount is reached.
The company gave an update in December of 2021 stating they’ve made progress on the Tamarack project and anticipate big growth in 2022.
“Over the last year, our in-house team and drilling assets consistently delivered high-grade nickel-copper mineralization at the Tamarack Nickel Project,” said Brian Goldner, Vice President of Exploration for Talon. “For 2022, we plan to be focused on progressing the Tamarack Nickel Project towards completion of a pre-feasibility study, while continuing to find new nickel rich areas along the Tamarack Intrusive Complex, with the goal of showing that Tamarack has ‘district’ scale potential.”
Tesla’s founder, Elon Musk, made a plea to mining companies back in 2020. He said he would give out a big contract to mine nickel “efficiently and in an environmentally sensitive way.”
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