It is no secret that Tesla has been looking for ways to secure more nickel, a key ingredient in its electric vehicle (EV) batteries.
During the company’s Q2 2020 earnings call last year, CEO Elon Musk made a plea for mining companies to take on efficient, clean, high volume nickel mining.
Last month he reiterated their need for nickel, saying on Twitter it was their “biggest concern for scaling lithium-ion cell production.”
Now Tesla has become a technical partner on a nickel mine on the Pacific island of New Caledonia, ensuring a long-term supply of the element.
According to the agreement, Tesla will be part of a “technical and industrial partnership” at the Goro mine with its owners, Brazilian mining firm Vale. Tesla will assist with product and sustainability standards, as well as take nickel for its battery production.
Last year Vale was also in talks with Tesla to obtain nickel from its mines in Canada. The company has operations in Ontario, Manitoba, and Newfoundland and Labrador.