Tesla Struck a Multi-Year Nickel Supply Deal with New Caledonian's Prony

Tesla Struck a Multi-Year Nickel Supply Deal with New Caledonian's Prony

Photo: Outremers360

Tesla struck a multi-year deal with Prony Resources from New Caledonia for the supply of nickel. This will make the region a key supplier of metal to the American electric vehicle manufacturer.

Prony Resources said Wednesday that Tesla has agreed to acquire about 42,000 tonnes of nickel as part of a multi-year deal, a pact that would make the New Caledonian mining industry a key metal supplier to the American manufacturer, Reuters reported.

The agreement will make Tesla Prony's largest customer, Antonin Beurrier, the miner's chief executive said at a press conference. The 42,000-tonne volume is indicative and may vary, he said. Beurrier declined to provide the duration or other details of the deal. He added that the supply agreement with Tesla was signed last month by Swiss commodity trader Trafigura, a shareholder in Prony Resources. Prony initially expects its nickel to be used to supply Tesla's battery supply chain in Asia.

Prony bought the loss-making nickel businesses in New Caledonia from Brazil's Vale SA this year. Tesla acted as a technical partner for the deal and advised on the development and improvement of the manufacturing process as part of a long-term nickel supply agreement for its production chain. Prony said it plans to produce 44,000 tonnes of nickel by 2024, double the expected production in 2021.

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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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