(Bloomberg) – A small Canadian company is accepting its offer from Elon Musk to efficiently mine nickel, betting it can be done carbon-free.
Toronto-based Canada Nickel Co. said it is looking to build a facility that processes carbonless nickel just days after the head of Tesla Inc. promised a “giant” contract to miners who produce the critical battery metal. in an “environmentally sensitive” way.
“The electric vehicle chain and the broader market in general are calling for zero-carbon products,” Canada Chief Executive Officer Nickel Mark Selby said by phone.
The estimated $ 1 billion facility would be developed in the Timmins-Cochrane region of northern Ontario, exploiting its proximity to hydropower to reduce emissions. The company is also exploring the use of serpentine rock, which naturally absorbs carbon dioxide when exposed to air.
Mining companies are under increased scrutiny to employ environmentally friendly practices. Nickel is a key component to the cathodes of electric vehicle batteries and could face a shortage as early as 2023, according to BloombergNEF. Prices increased more in almost a year after Musk’s request to mine more.
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