Skip to main content

A proposed northern Minnesota nickel mine has signed a deal with Tesla.

Talon Metals announced Monday it's entered into an agreement with Tesla. The electronic vehicle company has committed to buying 75,000 metric tons (165 million pounds) of nickel concentrate over six years from the as-of-now unapproved mine in Tamarack, Minnesota.

Nickel is used in the production of electric vehicle batteries. 

“This agreement is the start of an innovative partnership between Tesla and Talon for the responsible production of battery materials directly from the mine to the battery cathode," said Henri van Rooyen, CEO of Talon.

The deal calls for Talon to make "commercially responsible efforts" to open the mine, which is about 50 miles west of Duluth, by Jan. 1, 2026. 

However, the mine has not yet undergone the State of Minnesota's environmental and mine permitting process. The mine is likely to face opposition from environmental groups.

The mine would be one of few nickel mines in the U.S. and is a joint venture between Rio Tinto and Talon Metals.

The Star Tribune reports that around 7% of nickel production is used for electric vehicle batteries, but that is expected to rise to around 22%  by 2030 as the market grows.

Sign up: Subscribe to our BREAKING NEWS newsletters

Next Up

2019_0914_Packers_Away_0419

What happens to the Vikings if Aaron Rodgers leaves the NFC North?

Rodgers said he isn't interested in rebuilding in Green Bay, is it time for the Vikings to pounce or stay the course?

ambulance

Sheriff: Men found unresponsive in garage died of cocaine overdose

Two of the three men found unresponsive in an Eyota garage last week died of a drug overdose, a preliminary autopsy found.

Anthony Edwards

Ant's injury clouds Timberwolves' victory over the Nets

The Timberwolves star was injured in the final minutes on Sunday night.

Akoya Lee

Byron native Ayoka Lee sets NCAA record for points in a game

The Kansas State forward broke a record shared by former Gopher Rachel Banham.

cold, wind chill, freezing

It's going to be stupid cold again Tuesday and Wednesday

They'll almost certainly be the 10th and 11th days with subzero temps this month.

Williams Uptown Pub

Williams Uptown Pub & Peanut Bar closes indefinitely after shooting

Reports say police have arrested two suspects in the incident.

Alex Rodríguez

A-Rod wears a Packers hat, Minnesotans lose their minds

The Timberwolves co-owner didn't endear himself to his fan base on Saturday night.

Related

PolyMet gets the forest land it wanted for that copper-nickel mine

PolyMet got the land. But what else has to happen before the mine gets approved?

boundary waters

Tina Smith urges Biden Admin. to restart study on mining near Boundary Waters

The study, which the Trump Administration stopped, would determine the environmental and economic impacts of a ban on mining in the area.

Plans for a copper-nickel mine near the BWCA have been blocked

People worried about the environment are happy. The mining company is not.

phillips distilling

Minnesota-based Phillips acquires 2 alcohol brands

The brands will join Phillips' growing portfolio of flavored spirits.

eden prairie police department tesla

Eden Prairie Police Department adds Tesla to patrol fleet

It's the city's first fully electric vehicle.

Battle waged over mining firms' plans

The opening salvo has been fired in a war over what might be Minnesota's next great mining boom. Three environmental groups on Wednesday launched a campaign to alert Minnesotans about large mining operations proposed near popular vacation spots in northern Minnesota. The mining industry says it welcomes debate.

dot henke

Hershey is buying North Dakota's Dot's Pretzels in deal worth $1.2 billion

Also included in the deal is the pretzel maker Pretzels Inc.