News

Nickel expert calls on Musk, Farley, others to demand Nickel sourcing in North America

Credit: Tesla, Ford

Published

4 years ago

March 16, 2022

Joey Klender

Surging prices of nickel, a potentially major influence in the future of the global electric vehicle market, have encouraged one mining expert in the field to call on automotive CEOs to demand more attention toward sourcing the metal in North America.

Nickel and its appeal to EVs

Nickel has been a significant talking point of many automotive CEOs for about two years as its wide availability could alleviate battery manufacturing bottlenecks for cells containing either controversial or hard-to-obtain rare earth metals. Tesla CEO Elon Musk first discussed nickel mining during an Earnings Call in mid-2020. Musk pledged a massive contract to any company that could supply nickel to Tesla, as long as it was sourced efficiently and sustainably.

“Well, I’d just like to reemphasize, any mining companies out there, please mine more nickel, OK?” Musk said on the call. “Wherever you are in the world, please mine more nickel, and don’t wait for nickel to go back to some long — some high point that you experienced some five years ago or whatever. Go for efficiency, as environmentally friendly, nickel mining at high volume. Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way. So hopefully, this message goes out to all mining companies.”

Musk eventually landed a nickel supply deal with Minnesota-based Talon Metals in January. It was the first major nickel supply deal Tesla landed and could be a monumental development in the production of EV battery cells.

Nickel increases energy density and therefore driving range, which is an essential metric for EV owners. Despite Elon Musk’s recent claim that too much EV range is counterproductive because it takes away from the performance, a small poll I ran on Twitter seemed to show that people were more concerned about range than performance. Two-thirds of respondents claimed they would sacrifice performance for more range. Despite Tesla’s high-range cars, which are only eclipsed by the Lucid Air’s premier Dream Edition trim, cold weather climates have shown to be one of EV range’s biggest foes, consistently trimming range estimations due to inefficient battery heating.

Soaring prices: $30k to $100k in the blink of an eye

Following a short squeeze on Nickel on the London Metals Exchange, the cost of a metric ton of the metal surged $70,000. Trent Mell, critical mineral expert and CEO of Electra Battery Materials, spoke to Teslarati last week regarding the price surges, which have him ready to make a proposal to automotive CEOs. “I would encourage the big names: Musk, Farley, Barra, to start demanding Nickel sourcing in North America,” Mell said.

According to Statista, Canada is the sixth-biggest producer of nickel globally, with 130,000 metric tons of the element produced in 2021. The United States ranked tenth on the list, with 18,000 metric tons. Mell believes, while North America has a low contribution rate to the global primary nickel supply, there is potential for extreme growth.

“North America currently only contributes around 4% of global primary nickel,” Mell said. “There is no immediate North American solution to growing nickel demand, but we anticipate that the construction of processing capacity on the continent will act as a catalyst to bring more primary nickel, in the form of mining operations, online in coming years so that North America can become increasingly self-reliant on domestically sourced raw materials. There are ample, good-quality nickel projects in North America.”

Nickel is highly-available in Russia, which has had numerous sanctions set by the United States and other governments due to the invasion of Ukraine. According to Mell, nickel in Russia, the third-most available region in the world, is Class 1, which means it is of the highest quality, which is eventually used in EV batteries, among other products. Mell said Nornickel, the country’s leading miner of the metal, exports 96 percent of its product, with 45 percent of that going to Europe.

Nickel is going to be a major factor in EV batteries in the coming years. However, automakers have had to adopt different strategies to keep their vehicles flowing off production lines and into customers’ garages. For standard range vehicles, many companies have adopted lithium-iron-phosphate, or LFP, batteries, which are available in wide supply in other markets and offer less range but more affordability. Tesla started transitioning some U.S. Standard Range Model 3 vehicles to LFP cells late last year, as it would reduce wait times. Eventually, it revealed all Standard Range vehicles would equip the LFP chemistry.

However, Mell does not believe LFP is a solution in the long term.

“We used to refer to LFP cells as ‘golf cart batteries,’” he said. Referring to the cell as a “half-hearted solution,” Mell understands the use of LFP for entry-level vehicles but knows nickel is the real solution, which led him to consider proposing industry-leading CEOs to push President Joe Biden to discuss more options in either domestic or, at least, North American mining projects.

Nickel is also easier to recycle and can be easily refined into new cells. Swedish company Northvolt successfully built a cell from recycled nickel last year.

What can consumers expect from the Nickel price hikes?

Mell is adamant that the current levels of nickel on the LME are not sustainable. “I would encourage consumers to wait about six months. Then we’ll see prices drop back to normal levels,” he said. However, as some analysts pointed out, the spikes in price could add between $750 and $1,000 per vehicle in the short term.

Musk said earlier this week that “significant inflationary pressure” was affecting both Tesla and SpaceX, which hinted toward price increases on the company’s vehicles. Last night, Tesla applied price increases to all four of its all-electric vehicles, with the Model X Plaid variant receiving the most substantial surge: $12,500.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Related Topics:Battery / Charging Electric Vehicles Elon Musk Featured Jim Farley Mary Barra Nickel

Joey Klender

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Comments

News

Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Published

20 hours ago

November 14, 2025

Joey Klender

Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Everyone thinks they need it. I would think that too if I didn’t know how good Tesla’s interface was. CarPlay is a crappy layer on top of crappy info-navs, and people think it’s an imperative because it provides a level of consistency from car to car. They have no clue how much…
— Rich Stafford (@r26174_rich) November 14, 2025

How can it not be when the best engineers choose Tesla over Apple and Tesla’s core focus is auto vs Apple being mobile. It’s what Tesla does every day. It’s a side project for Apple. Still Apple is much better than any other auto OEM who attract lesser talent and make digital…
— Emu (@confessedemu) November 14, 2025

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi

Investor's Corner

Ron Baron states Tesla and SpaceX are lifetime investments

Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.

Published

21 hours ago

November 14, 2025

Simon Alvarez

Credit: @TeslaLarry/X

Billionaire investor Ron Baron says he isn’t touching a single share of his personal Tesla holdings despite the recent selloff in the tech sector. Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.

Baron doubles down on Tesla

Speaking on CNBC’s Squawk Box, Baron stated that he is largely unfazed by the market downturn, describing his approach during the selloff as simply “looking” for opportunities. He emphasized that Tesla remains the centerpiece of his long-term strategy, recalling that although Baron Funds once sold 30% of its Tesla position due to client pressure, he personally refused to trim any of his personal holdings.

“We sold 30% for clients. I did not sell personally a single share,” he said. Baron’s exposure highlighted this stance, stating that roughly 40% of his personal net worth is invested in Tesla alone. The legendary investor stated that he has already made about $8 billion from Tesla from an investment of $400 million when he started, and believes that figure could rise fivefold over the next decade as the company scales its technology, manufacturing, and autonomy roadmap.

The 32nd Annual Baron Investment Conference is in full swing at @LincolnCenter!

From the vibrant energy on the plaza to the excitement filling the auditorium, today reflects the shared enthusiasm that brings our investors together year after year.#BaronConference25 pic.twitter.com/MX4zvFIwha— Baron Capital (@BaronCapital) November 14, 2025

A lifelong investment

Baron’s commitment extends beyond Tesla. He stated that he also holds about 25% of his personal wealth in SpaceX and another 35% in Baron mutual funds, creating a highly concentrated portfolio built around Elon Musk–led companies. During the interview, Baron revisited a decades-old promise he made to his fund’s board when he sought approval to invest in publicly traded companies.

“I told the board, ‘If you let me invest a certain amount of money, then I will promise that I won’t sell any of my stock. I will be the last person out of the stock,’” he said. “I will not sell a single share of my shares until my clients sold 100% of their shares. … And I don’t expect to sell in my lifetime Tesla or SpaceX.”

Watch Ron Baron’s CNBC interview below.

@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi

News

Tesla CEO Elon Musk responds to Waymo’s 2,500-fleet milestone

While Tesla’s Robotaxi network is not yet on Waymo’s scale, Elon Musk has announced a number of aggressive targets for the service.

Published

21 hours ago

November 14, 2025

Simon Alvarez

Credit: Tesla

Elon Musk reacted sharply to Waymo’s latest milestone after the autonomous driving company revealed its fleet had grown to 2,500 robotaxis across five major U.S. regions.

As per Musk, the milestone is notable, but the numbers could still be improved.

“Rookie numbers”

Waymo disclosed that its current robotaxi fleet includes 1,000 vehicles in the San Francisco Bay Area, 700 in Los Angeles, 500 in Phoenix, 200 in Austin, and 100 in Atlanta, bringing the total to 2,500 units.

When industry watcher Sawyer Merritt shared the numbers on X, Musk replied with a two-word jab: “Rookie numbers,” he wrote in a post on X, highlighting Tesla’s intention to challenge and overtake Waymo’s scale with its own Robotaxi fleet.

While Tesla’s Robotaxi network is not yet on Waymo’s scale, Elon Musk has announced a number of aggressive targets for the service. During the third quarter earnings call, he confirmed that the company expects to remove safety drivers from large parts of Austin by year-end, marking the biggest operational step forward for Tesla’s autonomous program to date.

Rookie numbers— Elon Musk (@elonmusk) November 13, 2025

Tesla targets major Robotaxi expansions

Tesla’s Robotaxi pilot remains in its early phases, but Musk recently revealed that major deployments are coming soon. During his appearance on the All-In podcast, Musk said Tesla is pushing to scale its autonomous fleet to 1,000 cars in the Bay Area and 500 cars in Austin by the end of the year.

“We’re scaling up the number of cars to, what happens if you have a thousand cars? Probably we’ll have a thousand cars or more in the Bay Area by the end of this year, probably 500 or more in the greater Austin area,” Musk said.

With just two months left in Q4 2025, Tesla’s autonomous driving teams will face a compressed timeline to hit those targets. Musk, however, has maintained that Robotaxi growth is central to Tesla’s valuation and long-term competitiveness.