Prony Resources says Tesla has agreed to a multi-year nickel purchasing deal

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MELBOURNE : New Caledonia's Prony Resources said on Wednesday Tesla Inc had agreed to purchase more than 42,000 tonnes of nickel in a multi-year deal - a pact that is set to make it a key supplier of the metal to the U.S. electric car maker.Prony, which bought the loss-making nickel operations in the Fren

MELBOURNE : New Caledonia's Prony Resources said on Wednesday Tesla Inc had agreed to purchase more than 42,000 tonnes of nickel in a multi-year deal - a pact that is set to make it a key supplier of the metal to the U.S. electric car maker.

Electric vehicle makers have made securing sufficient supplies of nickel - a key ingredient in automotive batteries - a top priority and are particularly keen to seek out sustainable and low-carbon nickel supplies. Prony expects the nickel market to return to a surplus for four years from 2022 partly as top producer Indonesia will boost supply - albeit in a process that is emissions heavy. But by 2026 demand for nickel from the battery sector should be"exponential", outstripping supply again, it said.

 

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