Tesla signs new deal with New Caledonia to secure its supply of the battery metal

Tesla, Inc., an American electric vehicle and clean energy company, have agreed to buy nickel from a mine that is present in New Caledonia. The firm has stated that this move is to secure its supply for the battery metal, one of the biggest concerns of the electric vehicle sector. The electric-car maker will also be a part of the technical adviser group in the Goro mine, which is present on the Pacific Island. With this, Tesla will get long-term supplies of Nickel as part of this agreement.

Nickel is the major component of the most powerful lithium-ion batteries that are used in electric vehicles. Since there is a growing concern about the future supplies of nickel, Tesla has made this move. New Caledonia is one of the largest Nickel producers, and it has agreed to produce Nickel for the electric-car maker Tesla.

The agreement was made in the presence of New Caledonia representatives. At the same time, Tesla will not have an equity stake, whereas commodity trader Trafigura will have a 19 percent share. Elon Musk took Twitter to make an official announcement regarding the agreement. Following the news, nickel prices fell eight percent. Nickel was traded at $16,290 a ton.