Recently, Tesla’s Elon Musk asked worldwide miners to mine more nickel.
He offered giant contracts to miners who can prove their work is environmental-friendly and fits Tesla’s standards.
Luckily for the company, the call was heard and answered by a Canadian mining company.
Canada Nickel Co. is a mining company from Toronto and is willing to collaborate with the electric vehicle titan.
They are ready to build a factory that will promote the production of zero-carbon nickel, which is what Mr. Musk is looking into.
The Chief Executive Officer of Canada Nickel gave a statement, saying, “The electric vehicle chain and the broader market, in general, is crying out for a zero-carbon product.”
The new zero-carbon facility will be built Timmins-Cochrane region in Northern Ontario.
The nickel provider will reduce its carbon emissions even further thanks to the nearness of hydroelectric power.
Also, Canada Nickel is considering the use of serpentine rock, a natural material that absorbs carbon dioxide.
By having all these advantages, Canada Nickel has big chances to seal the deal with Tesla and become the leading nickel supplier for the new battery program.
Tesla is an ultra-successful car company but still growing. The company’s further expansion depends largely on custom battery production.
Nickel is the essential component of batteries, so a reliable nickel miner is what Tesla needs to keep growing.
Even Elon Musk said recently that his company’s biggest challenge is the battery supply.
According to him, nickel-based batteries have a higher energy density, which gives cars more range.
Nickel will most likely gain a lot of value, thanks to the increased demand for it.
The battery size of Semi and Cybertruck is large and will require a lot of this component, as the CEO is eliminating cobalt from his batteries, and replacing it all with nickel.
Thanks to Canada Nickel’s fast response to Elon Musk’s call, Tesla will get high amounts of nickel supply and start the production of its batteries.
As the company is aiming for increased car manufacturing in the new factories, the demand for nickel will increase as well.
During the Q2 Earnings Call, Mr. Musk asked mining companies to produce more nickel and explained the importance of it, “Well, I’d just like to re-emphasize any mining companies out there, please mine more nickel. Okay. Wherever you are in the world, please mine more nickel and don’t wait for nickel to go back to some long — some high point that you experienced some five years ago, whatever. Go for efficiency, obviously 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. Please get nickel.”
