Earlier this month, Reuters reported that the miner was in discussions with Tesla about growing the Turnagain mine collectively, which might give the EV big entry to low-carbon nickel for its batteries. Sources at Reuters additionally talked about potential offers with different automakers together with BMW and Mercedes.
The plan for Giga Metals is to supply 40,000 tonnes of nickel and a couple of,000 tonnes of cobalt a 12 months for 20 yearsAlthough Giga Metals president Martin Vydra declined to remark about any potential offers with Tesla or different carmakers when requested by Reuters, he did say that the corporate is “actively engaged, and has been for some time, with automakers” relating to its means to supply carbon-neutral nickel.
In July, Tesla CEO Elon Musk promised that “Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” A month earlier, to keep away from a provide squeeze on its battery steel, his firm had struck a deal to purchase as much as 6,000 tonnes of cobalt from Glencore, which sources the steel from the Democratic Republic of Congo.
Giga Metals’ low-carbon nickel plans embrace turning waste from its operations into cement-type rock utilizing carbon dioxide within the ambiance and utilizing hydropower. “It is possible a mine at Turnagain could be carbon neutral or better,” the corporate mentioned in its investor presentation.
The plan for Giga Metals is to supply 40,000 tonnes of nickel and a couple of,000 tonnes of cobalt a 12 months for 20 years, the corporate mentioned in an earlier press launch.
“The continued growth in lithium-ion batteries relies on available nickel in the form of intermediates, powders or briquettes of which 2020 production is expected to total 477,000 tonnes according to Wood Mackenzie,” Giga Metals’ Vydra mentioned.
He estimated that 400,000 tonnes of nickel would equate to roughly Eight million electrical autos (EVs) using 50 kg of nickel per EV. “That’s not too far in the future and when you consider that it takes anywhere from 5-10 years to bring a nickel operation into production,” Vydra added.
Shares of Giga Metals have been up 12.3% by 12:30 p.m. EDT Tuesday, after rising as a lot as 16.8% earlier within the session. The corporate’s market capitalization is presently at C$64.Three million.
When rumors of the Tesla talks first broke on September 11, Giga Metals’ stock almost tripled from C$0.58 to C$1.65 in in the future with over 9.1 million shares exchanged throughout the session. That momentum carried over to the next week because it hit a 52-week excessive of C$2.44, earlier than traders started promoting off the stock on September 15.
Fairness Guru reporter Chris Parry final week raised questions in regards to the timing of some insider gross sales in addition to train of choices earlier than and after the preliminary report of a possible Tesla deal. Nevertheless, Reuters mentioned it stands by its reporting.