News
Tesla supplier Talon Metals on Manchin EV Bill, Tesla & more
Tesla supplier, Talon Metals (TLO.TO) gave Teslarati an exclusive interview and we talked about the Manchin EV Bill, Tesla and more.
I received some great feedback on one of my recent articles from Todd Malan, Chief External
Affairs Officer & Head of Climate Strategy at Talon Metals, one of Tesla’s key suppliers of nickel
and other battery minerals in the USA.
The two companies signed an offtake partnership in January of this year to supply nickel from Talon’s project in central Minnesota. Todd is based in Washington DC for Talon and therefore has a front-row seat to the wrangling among various parties regarding Senator Manchin’s new EV tax incentives in the Infrastructure Reduction Act of 2022.
As of this morning, voting was slated to begin today and the bill is expected to pass on a partisan line vote in the early morning of Monday. If the House passes it next week, it should be on President Biden’s desk by the end of the week.
Manchin’s EV tax credit proposal
Todd shared his thoughts on Manchin’s EV tax credit proposal. On one hand, it’s breathtakingly generous in that it lifts all numerical limits on EVs that are eligible for the $7500 tax credit.
Previously, 200,000 cars per year for each nameplate. On the other hand, Manchin’s proposal sets some new eligibility parameters around the cost of the EV, the income level of the buyer, and the source of the battery raw materials (sourced from the US or countries that have a Free Trade
Agreement with the US).
As I reported last week, some automakers are unhappy with Manchin’s strings on the EV credit, others like Tesla seem to be taking more of a “can do” approach when it comes to the mineral content provisions.
Todd also walked me through the comprehensive approach that Senator Manchin took to
supporting domestic mining and mineral processing across the full bill.
So, Manchin isn’t just telling automakers to buy from domestic sources of minerals and metals from domestic sources and leaving it to them. He also added significant new government support to help the supply chain get up and running on an urgent basis.
The fact that he got commitments from Democratic leaders in Congress and President Biden to reform the permitting process in the US in separate legislation (not just for mines but for solar, wind and hydrogen too) is another signal of Manchin’s holistic approach to ramping up the full battery supply chain in the US and also rely on allies that happen to be mineral powerhouses like Australia and Canada.
Todd had a very optimistic view that all of these provisions, including the EV credit, will help the U.S. address its dependency on China for batteries and scale up its capability in battery mineral production.
The core of his view is that it will take partnerships between miners, automakers,
regulators, recyclers, and other parts of the supply chain to meet the Manchin content
requirements.
Todd thinks Tesla and Ford stand out as companies leading the way in this new
approach to supply chain security.
Some automakers are not happy with Senator Manchin’s EV tax credit proposal
Todd read my article, Automakers are not too happy with Senator Manchin’s EV tax credit
proposal and pointed out that there was not a universal view among the automakers or the rest of the battery supply chain.
“Mazda and Rivian have been out-front in the media complaining about aspects of Senator
Manchin’s EV incentive proposal. I understand the concern that the timeline is very ambitious but on the other hand, Senator Manchin’s draft includes some of the world’s largest producers of battery materials: Canada, Chile, Australia, South Korea, etc.”
“Those countries that don’t have free trade agreements with the US, there is plenty of time (and now incentive) for them to negotiate agreements. Senator Manchin didn’t just confine the provision to the U.S., or even USMCA countries, but all countries that now or in the future have free trade agreements.”
“This is a balanced measure that will encourage domestic mining investment and development while also ensuring we can draw on our allies for secure supplies. It may not be the cheapest option for the automakers, but supply from this broad base of countries can be ramped up to meet the requirements.”
Todd pointed out that other parts of the auto lobby had a more nuanced approach to
Manchin’s proposal to support EV adoption. The Zero Emissions Transportation Association (ZETA), in which Tesla is a lead member, was quick to offer support for Manchin’s EV incentives.
Joe Britton, ZETA Executive Director was quoted in a number of media articles admitting that the domestic and ally content provisions would be hard to meet but that they could be met.
“If you look at the landscape as it exists today, it’s a challenge, but it’s doable,” said Joe Britton, the head of the Zero Emission Transportation Association, which advocates for EV adoption, told Bloomberg.“We can meet these metrics.”
Britton also has been praising the Manchin bill for what it will do for EV adoption. He told
News12 Westchester that he hopes the rebate can entice more people to purchase EVs. Britton said:
“In most areas of the country, especially the Northeast, it is five to six times more expensive to drive your vehicle on gasoline than it is by electricity. So, by making these vehicles more affordable on the front end, you’re really driving down that total cost of ownership”
As with most people that are involved with Tesla as suppliers, Malan was extremely careful to not speak for Tesla or speculate on their positions. But I realized that someone glancing at the headlines without reading through the article might assume that Tesla was of the same view as the legacy auto industry.
We all know Tesla prefers to speak for itself and Elon Musk shared a thought about Senator Manchin on Twitter yesterday. Although many were wondering what his tweet meant, I think it’s pretty clear he thinks Manchin is doing something right.
Thank goodness for Senator Manchin
— Elon Musk (@elonmusk) August 5, 2022
Partnerships across the value chain will be key
Todd pointed out to the Detroit News yesterday that it will take a range of
partnerships to meet the Manchin goals. He pointed out that Tesla and Talon have explicitly described their supply relationship as a partnership. Tesla is working with its suppliers.
Todd told me that everyone will need to work together to meet these goals.
“We need everyone working together to meet these ambitious goals in the Manchin bill.
Mining is the front end of the supply chain and it takes enormous knowhow, capital, and risk tolerance to discover, delineate, permit, construct and then safely operate a mine to supply battery minerals.”
“Processing has been the Achilles heel of the supply chain in the U.S. Luckily. Congress just provided new resources to address this issue in the bipartisan infrastructure bill. Everybody’s going to have to work together. The auto manufacturers, the miners, the people that do processing, and government at state and federal level.”
“Senator Manchin and others in Congress realize that governments are going to have to focus on improving the permitting process – not to cut corners in environmental protections but to make the process more certain, efficient, and reliable.”
“Not just for mines, processing or even EV battery factories – but also solar, wind, hydro and hydrogen projects. We can not afford a disorganized, uncoordinated, and inefficient regulatory process that causes unnecessary delays in progress. We need all these projects to come online to address the climate crisis while also ensuring we protect the environment through science-based permitting.”
Talon Metals on Senator Manchin’s proposal.
I’ve seen a lot of mixed feedback on Senator Manchin’s proposal. As noted in my earlier article, many automakers like Mazda and Rivian are lobbying hard to water it down. Not as much has been heard from the companies that source raw materials like nickel and lithium in the United States. So, I asked Todd to share his take–and that of Talon Metals.
“From the standpoint of a company that’s trying to build a responsible nickel mine in
Minnesota, we think that Senator Manchin has struck a good balance in this bill. First, it provides the most generous set of incentives for EV adoption ever enacted in law.
“It also encourages auto companies to work with domestic mines and mines in allied countries like Australia, Canada, and Chile and it provides some time for projects to ramp up. It also provides time for countries that don’t have FTAs to engage with the US and negotiate. Yes, it is a stretch goal but that seems appropriate given the climate crisis and our dependency on countries like China and Russia for battery supplies.”
“This is a carefully balanced bill that does push everyone to rise to the occasion. But that is appropriate because we want to create high-quality jobs in America as part of the energy transition and we don’t want to rely on Russia and China for the supply chain of battery minerals. It’s a matter of national security.”
How can automakers better work with their suppliers?
I asked this question because if automakers truly want to “get aggressive”; as Senator Manchin challenged them to do, then perhaps they need to take a page from Tesla and other leaders’practices.
“Having a Tesla off-take agreement in place has changed the perception of our project in the community. It’s very credentializing and our employees are proud of the partnership. People clearly understand that our proposed mine has a purpose: to supply nickel for the EV battery supply chain and contribute to the energy transition. This has helped shape how people perceive the project. It has a purpose and an important one.”
“Many of the large automakers are helping supply partners apply for some of the significant new funding opportunities being made available through the Bipartisan Infrastructure Bill. The Department of Energy is expected to give out over $1.8 billion in funding from that legislation this fall. This is another example of how the end-users can help the front end of the supply chain for battery materials.”
Todd commented that many auto companies are having a tough time adjusting to the new
reality of scarce commodities.
“They used to only focus on price and quality with a yearly focus on driving down the price. It’s a whole new game now, as they learned in the chip crisis. Some are still adjusting their mindset to scarcity and competition for supply.”
“It requires a change in mindset. No longer can the big auto company demand ever-lower price year over year. Smart end users have changed their mindset to partnership. That means understanding their partners’ issues, helping them to maximize productivity, access newtechnology, ramp up production, improve quality, and provide support during the permittingprocess or help obtain government funding.”
“This is the future, true partnership in the supply chain, from mine to cathode to recycling. That is how we meet Senator Manchin’s challenge and strengthen the supply chain for battery production.”
Todd didn’t come out and say it directly, but it came through in the way he talked about the Tesla. Yet again, Tesla is leading the industry in terms of securing supply from the right countries to feed its factories but also leading practices in working in partnership with key suppliers.
Knowing that I love cool rocks, Todd invited me up to Minnesota to check out what Talon is doing at Tamarack and show me some beautiful nickel samples. Todd also told me about Minnesota’s famous burger concoction, The Juicy Lucy.
Disclaimer: Johnna is long Tesla.
I’d love to hear from you! If you have any comments, concerns, or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter @JohnnaCrider1
News
Tesla Cybercab spotted with interesting charging solution, stimulating discussion
The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.
Tesla Cybercab units are being tested publicly on roads throughout various areas of the United States, and a recent sighting of the vehicle’s charging port has certainly stimulated some discussions throughout the community.
The Cybercab is geared toward being a fully-autonomous vehicle, void of a steering wheel or pedals, only operating with the use of the Full Self-Driving suite. Everything from the driving itself to the charging to the cleaning is intended to be operated autonomously.
But a recent sighting of the vehicle has incited some speculation as to whether the vehicle might have some manual features, which would make sense, but let’s take a look:
🚨 Tesla Cybercab charging port is in the rear of the vehicle!
Here’s a great look at plugging it in!!
— TESLARATI (@Teslarati) January 29, 2026
The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.
Now, it is important to remember these are prototype vehicles, and not the final product. Additionally, Tesla has said it plans to introduce wireless induction charging in the future, but it is not currently available, so these units need to have some ability to charge.
However, there are some arguments for a charging system like this, especially as the operation of the Cybercab begins after production starts, which is scheduled for April.
Wireless for Operation, Wired for Downtime
It seems ideal to use induction charging when the Cybercab is in operation. As it is for most Tesla owners taking roadtrips, Supercharging stops are only a few minutes long for the most part.
The Cybercab would benefit from more frequent Supercharging stops in between rides while it is operating a ride-sharing program.
Tesla wireless charging patent revealed ahead of Robotaxi unveiling event
However, when the vehicle rolls back to its hub for cleaning and maintenance, standard charging, where it is plugged into a charger of some kind, seems more ideal.
In the 45-minutes that the car is being cleaned and is having maintenance, it could be fully charged and ready for another full shift of rides, grabbing a few miles of range with induction charging when it’s out and about.
Induction Charging Challenges
Induction charging is still something that presents many challenges for companies that use it for anything, including things as trivial as charging cell phones.
While it is convenient, a lot of the charge is lost during heat transfer, which is something that is common with wireless charging solutions. Even in Teslas, the wireless charging mat present in its vehicles has been a common complaint among owners, so much so that the company recently included a feature to turn them off.
Production Timing and Potential Challenges
With Tesla planning to begin Cybercab production in April, the real challenge with the induction charging is whether the company can develop an effective wireless apparatus in that short time frame.
It has been in development for several years, but solving the issue with heat and energy loss is something that is not an easy task.
In the short-term, Tesla could utilize this port for normal Supercharging operation on the Cybercab. Eventually, it could be phased out as induction charging proves to be a more effective and convenient option.
News
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
The suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Tesla has confirmed that it is now producing both the anode and cathode of its 4680 battery cells using a dry-electrode process, marking a key breakthrough in a technology the company has been working to industrialize for years.
The update, disclosed in Tesla’s Q4 and FY 2025 update letter, suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Dry cathode 4680 cells
In its Q4 and FY 2025 update letter, Tesla stated that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process. The confirmation addresses long-standing questions around whether Tesla could bring its dry cathode process into sustained production.
The disclosure was highlighted on X by Bonne Eggleston, Tesla’s Vice President of 4680 batteries, who wrote that “both electrodes use our dry process.”
Tesla first introduced the dry-electrode concept during its Battery Day presentation in 2020, pitching it as a way to simplify production, reduce factory footprint, lower costs, and improve energy density. While Tesla has been producing 4680 cells for some time, the company had previously relied on more conventional approaches for parts of the process, leading to questions about whether a full dry-electrode process could even be achieved.
4680 packs for Model Y
Tesla also revealed in its Q4 and FY 2025 Update Letter that it has begun producing battery packs for certain Model Y vehicles using its in-house 4680 cells. As per Tesla:
“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.”
The timing is notable. With Tesla preparing to wind down Model S and Model X production, the Model Y and Model 3 are expected to account for an even larger share of the company’s vehicle output. Ensuring that the Model Y can be equipped with domestically produced 4680 battery packs gives Tesla greater flexibility to maintain production volumes in the United States, even as global battery supply chains face increasing complexity.
Elon Musk
Tesla Giga Texas to feature massive Optimus V4 production line
This suggests that while the first Optimus line will be set up in the Fremont Factory, the real ramp of Optimus’ production will happen in Giga Texas.
Tesla will build Optimus 4 in Giga Texas, and its production line will be massive. This was, at least, as per recent comments by CEO Elon Musk on social media platform X.
Optimus 4 production
In response to a post on X which expressed surprise that Optimus will be produced in California, Musk stated that “Optimus 4 will be built in Texas at much higher volume.” This suggests that while the first Optimus line will be set up in the Fremont Factory, and while the line itself will be capable of producing 1 million humanoid robots per year, the real ramp of Optimus’ production will happen in Giga Texas.
This was not the first time that Elon Musk shared his plans for Optimus’ production at Gigafactory Texas. During the 2025 Annual Shareholder Meeting, he stated that Giga Texas’ Optimus line will produce 10 million units of the humanoid robot per year. He did not, however, state at the time that Giga Texas would produce Optimus V4.
“So we’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk stated.
How big Optimus could become
During Tesla’s Q4 and FY 2025 earnings call, Musk offered additional context on the potential of Optimus. While he stated that the ramp of Optimus’ production will be deliberate at first, the humanoid robot itself will have the potential to change the world.
“Optimus really will be a general-purpose robot that can learn by observing human behavior. You can demonstrate a task or verbally describe a task or show it a task. Even show it a video, it will be able to do that task. It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP.
“It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does. Tesla, Inc. has never been a company to shy away from solving the hardest problems,” Musk stated.
Tesla Cybercab spotted with interesting charging solution, stimulating discussion
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
