Toronto-based Canada Nickel Co. Wants Tesla’s Giant Contract

Tesla CEO Elon Musk during the Q2 earnings call promised to give a gigantic contract to any company that can mine nickel efficiently in a way that is friendly to the environment.

Nickel, cobalt, and aluminum are three components that Tesla’s primary battery technology is based on. Since Tesla wants to produce cheaper, lighter, and super long-range batteries that can power Tesla vehicles more than 400 miles on a single charge, Nickel is very important for Tesla. Tesla is also clearly moving away from non-environmentally friendly miners, and components.

Batteries made with Nickel are energy-dense, which makes them smaller, lighter, and makes any vehicle they power driver longer on a single charge.

According to Bloomberg, a tiny Canadian company is taking Elon Musk up on his offer and bets it can get the job done carbon-free.

Chunk of Nickel

The battery is the most important component of an electric vehicle, just like OIL is super important to ICE cars. Tesla is mostly facing battery shortages, as demand is never the problem but supply.

In May 2019, Tesla Inc warned that there will global shortages of nickel, copper, and other electric-vehicle battery minerals down the road due to under-investment in the mining sector. According to IEA reports, Demand for electric vehicles is forecast to grow astronomically through the 2020s, with developments in battery capacity set to further the demand for nickel, making nickel segment the fastest-growing market for miners.

“The electric vehicle chain and the broader market, in general, is crying out for a zero-carbon product,” Canada Nickel CEO Mark Selby. The company said it wants to build a facility that will process zero-carbon nickel.

Nickel is a chemical element with the symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel belongs to the transition metals and is hard and ductile. more >>> Wikipedia

As mining companies go under increased scrutiny to employ environmentally-friendly practices, Tesla CEO faces tough challenges to hand out gigantic contracts to any company that meets his environmentally friendly mining requirement.

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