The Elements of Innovation Discovered
The Elements of Innovation Discovered
Metal Tech News - November 2, 2023
Talon Metals planned battery materials processing plant in North Dakota will produce concentrates enriched with the nickel needed for EV and renewable energy storage batteries.
Tesla has agreed to 165 million lb of nickel in concentrates produced from Talon Metals' Tamarack mine in Minnesota.
Passing a major landmark on its path to developing a domestic battery metals supply chain that begins at its high-grade Tamarack nickel project in Minnesota, Talon Metals Corp. has reached definitive terms with the U.S. Department of Energy for a $114.8 million grant to build a battery minerals processing facility in North Dakota.
"Our team is excited to reach this funding milestone with the Department of Energy to build-up America's battery manufacturing capacity from processing through to recycling," said Talon Metals CEO Henri van Rooyen. "The Department of Energy has worked diligently to put this agreement in place, and we are grateful to be entrusted with this funding that reflects a bi-partisan, national priority to reduce America's dependence on foreign countries like Russia and China for critical minerals like nickel."
This six-figure grant to Talon is part of DOE's much larger $2.8 billion funding package to bolster and accelerate lithium-ion battery material processing, manufacturing, and recycling in the United States.
With matching funds from grant recipients, this investment from the Bipartisan Infrastructure Law is expected to leverage roughly $9 billion to support the Biden administration's goals of having electric vehicles make up half of all new automobile sales in the U.S. by 2030 and to transition the nation to a net-zero emissions economy by 2050.
"This is truly a remarkable time for manufacturing in America, as President Biden's Agenda and historic investments supercharge the private sector to ensure our clean energy future is American-made," Secretary of Energy Jennifer Granholm said in October of last year when the battery material grant recipients were announced in October 2022.
With this enormous funding package from the Bipartisan Infrastructure Law focused on the mid-stream area of America's nascent lithium battery supply chain, the funding for Talon was designated for its processing plant.
As large as the DOE grant to Talon is, it only covers about 27% of the estimated $433 million cost to build the lithium-ion battery minerals processing facility in North Dakota. Talon is responsible for the roughly $318 million that will be needed for the plant.
The nickel exploration turned mine and processing plant development company, however, does have support from the world's second-largest EV manufacturer.
Early last year, Tesla Inc. committed to purchasing 75,000 metric tons (165 million lb) of nickel in concentrate from Talon.
The idea is to buy a substantial portion of the nickel produced during the first six years of mining at the Tamarack project starting in 2027.
The North Dakota processing plant is an extension of Tamarack, as it will upgrade ore shipped by rail from the Minnesota mine to concentrates enriched with nickel and cobalt for lithium-ion batteries, platinum group elements used to produce hydrogen, and iron for lithium iron phosphate batteries.
This strategy, which will significantly reduce the scope of permitting for the Tamarack mine site, is expected to shorten the path to delivering nickel-rich concentrates to Tesla and achieve the Biden administration's goals of establishing a robust lithium battery supply chain in the U.S.
The definitive agreement with DOE provides Talon immediate access to cash needed to continue community engagement, engineering, permitting, and commissioning of the planned North Dakota battery materials processing facility.
"We are committed to producing the necessary ingredients like nickel for the US battery supply chain while also protecting the environment and cultural resources where we operate," said Todd Malan, chief external affairs officer, and head of climate strategy for Talon Metals. "Now we can move forward with our partners to advance the planning and construction of the battery minerals processing facility in North Dakota."
In addition to ore from Tamarack, Talon says the North Dakota plant will have the capacity to process ore from multiple sources in North America.
With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.
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