Tesla Inc (TSLA)

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Tesla Reportedly In Talks To Buy Low-Carbon Nickel From Canada's Giga Metal
6:35 pm ET September 11, 2020 (Benzinga) Print

Tesla Inc (NASDAQ: TSLA) appears to be serious about its commitment to cut down on its carbon footprint as well as reduce pollution caused while driving.

What Happened: Tesla is engaged in discussions with Canadian miner Giga Metal for the supply of low-carbon nickel to make the batteries that power its EVs, Reuters reported, citing sources familiar with the matter.

Nickel is a preferred option for batteries, as it has a higher voltage and twice the energy density of other metals, allowing EVs cover more distance between charging with less weight, according to Euractiv.

Tesla is reportedly interested in helping Giga develop a large mine from which it can source low-carbon nickel.

In July, Tesla CEO Elon Musk sounded out his intention to support miners with a long-term contract if they can supply the EV maker with nickel mined efficiently and in an environmentally friendly manner, Reuters said.

Giga, though not confirming talks with Tesla, said it has been in discussions with automakers regarding its carbon-neutral nickel, the report said.

It would require less than $1 billion for the project, including the cost of hydroelectric power for the project, Giga's president Martin Vydra was quoted as saying.

Why It's Important The quest for green energy comes at a time when concerns have been raised about emissions tied to battery manufacturing that some believe nullify much of the positive impact of EVs on pollution.

Greenhouse gas emissions of 150-200 kg CO2-equivalent/kWh battery correspond to the greenhouse gas burden of current battery production, a research initiated by the Swedish government in 2017 showed.

It doesn't come as a surprise that Tesla is paying attention to carbon neutrality in its battery manufacturing process.