Tesla in Talks with Canada’s Giga Metals to Buy Low Carbon Nickel: Report
The search for sustainably-mined metals to use in electric vehicle (EV) batteries is constantly ongoing, though a recent report suggests that this may be changing.
On Friday, a source told Reuters that Tesla was discussing the development of a large mine with Canadian miner Giga Metals. The mine would give Tesla access to low carbon nickel to be used in its batteries.
Earlier in the year, Tesla was also in talks with Canada Nickel Company about efficiently, sustainably, and affordably mining low carbon nickels.
The need to reduce waste and pollution are both central to Tesla’s mining goals with Giga Metals, and the development of the mine would, theoretically, reduce waste significantly and provide a sustainable option for mining nickel.
Regarding the development of the mine, Tesla CEO Elon Musk said, “The cost of developing our project, excluding bringing hydroelectric power to the site, will be less than $1 billion.”
In July, Musk also told Canadian mining companies, “Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.”
While Canada produced 180,000 tonnes of nickel over the course of the last year, demand for the metal is expected to increase significantly in the coming years as EVs transition into the spotlight.
News of the reported links to Tesla sent shares of Giga Metals Corp surging, currently up 56% for the trading day.