Tesla has decided to become a technical partner in a nickel mine – which is needed for lithium-ion batteries that power electric cars.
Elon Musk’s car firm will also buy nickel from the Goro mine on the small Pacific island of New Caledonia to secure its long-term supply. The move comes amid growing concerns about future supplies of nickel.
New Caledonia is the world’s fourth largest nickel producer, which has seen a 26% rally in prices in the past year. “Nickel is our biggest concern for scaling lithium-ion cell production,” Musk said on Twitter last month.