Nickel is a metal that can be used for many things, including batteries for electric vehicles. As reported by Bloomberg, Tesla has recently reached out to companies about mining and processing nickel in an environmentally sustainable way.
Toronto-based mining company Canada Nickel Company decided they would do just that. They announced that they would be building a $1 billion facility in Northern Ontario. The facility will reportedly make use of hydroelectric power to reduce emission levels. Serpentine rock could also be a huge step towards mining nickel carbon-free, as it can naturally soak up carbon dioxide when exposed to air.
Chief Executive Officer Mark Selby made a statement about how important acquiring nickel efficiently and sustainably is:
“The electric vehicle chain and broader market in general is crying out for zero-carbon product.”
During the Q2 conference call, Elon Musk strongly encouraged mining companies to “please mine more nickel:
“Go for efficiency, as environmentally friendly, nickel mining at high volume. Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way. So hopefully, this message goes out to all mining companies.”
Nickel Co. says it will create a subsidiary called NetZero Metals, to start research and development of a processing facility to be located in Timmins, Ontario, to produce carbon-free nickel, cobalt and iron. Shares of Canada Nickel Company on the TSX surged 47% today on the news, currently trading at $1.99 CAD per share as of writing.
The prices of nickel are expected to drastically increase if things don’t change, as the supply is expected to dwindle by 2023. The pressure is on for all mining companies to create more environmentally-friendly practices.