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Tesla reportedly looking to source low-carbon nickel from Canada

So far neither the mine or the automaker have confirmed this

Elon Musk and Tesla are reportedly entering into a contract with Canadian nickel mining operation Giga Metals.

Tesla has been searching for a low-carbon nickel producer since as early as the summer when Musk put out a call for the mineral during the company’s earnings report. The automaker is looking for low-carbon nickel specifically as it tries to reduce its greenhouse gas footprint even more.

Giga Metals uses a process of turning the waste it creates into a cement type rock. This also uses carbon from the air, which helps offset the carbon emissions produced during mining. Tesla plans to us B.C.’s hydroelectric power as well, which is considered greener than fossil fuels.

So far, neither Giga Metals nor Tesla have publicly shared that they’re working together, but three sources who talked with The Globe and Mail have reported their intentions. That said, Giga Metals did tell the publication that it’s actively engaged with some automakers to produce carbon-neutral nickel for them.

The company also says that the cost of developing its carbon-neutral mine will be under $1 billion CAD.

Nickel is essential for Tesla and many other EV manufacturers since it’s used to make batteries. Many places around the world can mine it, but they don’t always do so sustainably. Since Tesla is a reasonably green company, being able to source responsibly manufactured materials is a pretty large part of its mandate.

This isn’t the first Canadian mine that’s vying for Tesla’s attention. Another operation in Sudbury, Ontario, has expressed interest as well, but only time will tell if either company walks away with the Tesla contract.

Musk recently tweeted that “exciting things will be unveiled on battery day,” which is September 22nd. Maybe we’ll see some new battery tech alongside an announcement as to where Tesla is going to be sourcing its nickel from.

Source: The Globe and Mail

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