Tesla and LG Chem look to New Caledonia for nickel
As Tesla increases their production of electric batteries, they are looking for additional nickel and cobalt supplies, namely from their supplier LG Chem. Both companies are turning their interest to New Caledonia’s Goro mine, with LG Chem closely linked to Korea Zinc Co., one of the candidates to take over the South Province nickel site.
Tesla recently announced that they were moving in-house for battery manufacturing and are looking to expand their nickel cathodes and lithium deposits. With increased nickel requirements, their strategy could look towards Vale’s New Caledonian plant. Tesla has already shown their interest in site back in March 2020 when the management of Vale New Caledonia met with Elon Musk in the USA.
Elon Musk recently tweeted: “We intend to increase, not reduce battery cell purchases from Panasonic, LG & CATL (possibly other partners too).”
LG Chem is a shareholder in one of the primary South Korean metallurgists, Kemco, a subsidiary of the world’s biggest producer of raw minerals such as zinc, lead and silver, Korea Zinc Co. South Korea is one of the growing markets looking to increase their nickel investments. The New Caledonian group, Sofinor-SMSP, who has ties to the North Province of New Caledonia, could also play a part in the potential sale.
Nickel price at LME on 09/21/2020 was $ 14.179 per tonne.
Sources: https://la1ere.francetvinfo.fr/nouvellecaledonie/nickel-cobalt-tesla-lg-chem-korea-zinc-874314.html
https://www.usinenouvelle.com/tesla-batteries-sans-convaincre-les-investisseurs.N1008024