EVs need nickel: Minnesota metal company digs for the solution with new mine
City of Tamarack torn over nickel mine’s projected 2026 opening
Small Minnesota town touts economic benefits of new nickel mine
Talon Metals climate strategy head Todd Malan argues the construction of a nickel plant in Tamarack, Minnesota, will operate on a 'high standard.'
An American-based metal manufacturer out of a small town in Minnesota is fighting to establish a domestic nickel supply chain as demand for the product increases, and supply continues to deplete.
"With working people being a part of, actually, the economic benefits of this, it's actually verifiable, it's transparent. And by and large, we think that the majority of people will actually support doing it here and doing it right," Talon Metals climate strategy head Todd Malan told FOX Business senior national correspondent Connell McShane Wednesday on "Varney & Co."
Talon Metals out of Tamarack, Minnesota – a town with a population size of 62 – teamed up with mining company Rio Tinto to build an on-site nickel mine, which is expected to be fully operational in 2026. With the electric vehicle (EV) market growing, Talon Metals has also struck a deal with Tesla to produce nickel domestically for its car batteries.
The Minnesota mine’s opening date is the same year that America’s only other existing nickel mine in Michigan will close. A shortage of the mineral could threaten automakers’ ability to produce enough EVs by the Biden administration’s 2035 goal.
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Last year, Biden announced nearly $85 billion in private-sector investments because of the Bipartisan Infrastructure Law, the Inflation Reduction Act and the CHIPS and Science Act, which increases the production of electric vehicles, batteries and EV chargers across America.
Brian Goldner, head of exploration at Talon Metals, assesses the metals in a sample taken at the Tamarack plant. (Getty Images)
While Biden has taken credit for bolstering the electric vehicle portfolios of companies like Ford Motor Company, General Motors, Honda and Toyota, much of their transitions to electric vehicle production were well underway before the Inflation Reduction Act was signed into law last August.
"This material is going to have to come from somewhere, and [it's] better to do it at high standards in the United States," Malan added.
Despite the Tamarack mine’s commitment to causing as little environmental damage as possible, the project has received objections from indigenous communities in Minnesota.
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"Our people have lived here for generations, and we exist in a unique relationship with nature and the natural surroundings and our natural resources that are here," Mille Lacs Band of Ojibwe Commissioner of Natural Resources Kelly Applegate also told McShane. "These resources need clean water to exist and survive and to provide for our people."
"This type of industry should raise concern for not only the members of the community here, but for greater Minnesota, the United States, and potentially the planet," Applegate continued.
Environmental groups National Wildlife Federation, Environmental Defense Fund, Natural Resources Defense Council and Sierra Club, did not respond to FOX Business' request for comment on Minnesota's new mine.
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Proposed Minnesota nickel mine drives the EV debate
FOX Business' Connell McShane reports from Tamarack, Minnesota, where a small town is fighting for the establishment of a nickel mine amid a shortage of the mineral.
Talon Metals has already hired 100 geologists for the construction of the mine and hopes to add 150 other positions when it opens.
Right now, the mining operation is moving with full steam ahead, proving this small town may one day play a big part in America’s economic future.
FOX Business’ Lawrence Richard contributed to this report.