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Proposed Minnesota Nickel Mine Seeks Approval to Supply Tesla

  • Talon Metals Corp. has filed papers to launch the environmental review process for its proposed underground nickel mine near Tamarack, Minnesota, which would supply nickel to Tesla for electric car batteries.
  • The project has received a $114 million grant from the Department of Energy to build an ore processing plant in North Dakota, as part of the Biden administration's efforts to boost domestic production of metals needed for electric vehicles and the fight against climate change.
  • The project faces opposition from the Mille Lacs Band of Ojibwe and environmental groups concerned about the potential impacts on water resources and Native communities in the area.
  • Talon Metals is a joint venture with the Anglo-Australian company Rio Tinto, and has an agreement with Tesla to supply 75,000 metric tons of nickel concentrate and smaller quantities of cobalt and iron from the mine over six years once it goes into commercial production.
  • The review process historically takes several years, but Talon is hoping the mine's design will speed things up enough so that it can begin production for Tesla in 2027.
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