Tesla buys New Caledonian Nickel Mine to lock in long-term supply of Nickel Mine

Tesla received a supply of nickel on Thursday for its electric car batteries after the New Caledonia government reached an agreement with Brazilian mining company Vale to sell its Goro mine, according to recent reports. Tesla has agreed to buy nickel from the Goro mine in New Caledonia, giving it greater control over its battery metal supply chain.

It is reported that nickel is an important metal in the production of lithium-ion batteries for electric vehicles, after Tesla CEO Elon Musk (Elon Musk) expressed concern about its availability. As part of the agreement with the government of New Caledonia, Tesla will have the right to receive a long-term supply of nickel from the mine and will act as a technical adviser to the project.

New Caledonia mines account for 25 per cent of the world's nickel, while Goro mines have one of the largest reserves, producing about 40000 tons of nickel a year.