Canada Nickel held talks with U.S. government on supplying metal for EV batteries

Canada Nickel

08/02/2021 11:00

By Jeff Lewis
    TORONTO, Feb 8 (Reuters) - Junior miner Canada Nickel Co Ltd
 CNC.V  has held talks with U.S. government officials about
potentially supplying nickel for electric car batteries, its
chief executive said, amid mounting concern in Washington about
China's dominance of global supply chains.    
    "It's become very clear that there's large portions of the
periodic table for which the United States has no local source
of supply," Canada Nickel chief executive Mark Selby said in an
interview. He confirmed the talks but declined further comment.
     Canada Nickel's sole project, the Crawford nickel deposit
in Ontario, is not expected to begin production until the middle
of the decade. Construction of an $800 million to $1 billion
mine and mill is slated for 2023, pending financing and
permitting.
    The outreach to Canada Nickel shows heightened U.S.
government interest in securing supplies of critical minerals
used in everything from electric vehicles to advanced weaponry.
    U.S. President Joe Biden plans to review critical U.S.
supply chains while Canadian Prime Minister Justin Trudeau last
week told Reuters there is potential for greater cross-border
integration to spur mineral development.  urn:newsml:reuters.com:*:nL1N2K82AU
 urn:newsml:reuters.com:*:nL1N2KA2LK
    U.S. Commerce Department officials held an introductory call
in August with the miner to gauge its "ability to supply
critical minerals, especially as it relates to EV batteries" and
later offered an introduction to the U.S. Export-Import Bank
credit agency, e-mails from the U.S. consulate general in
Calgary show. The office did not respond to a request for
comment.
    Separately, the U.S. Department of Energy's advanced
research arm has sought the miner's input on "energy relevant
mineral extraction," a separate e-mail seen by Reuters shows.
Program director Douglas Wicks declined to comment.
    Nickel makes batteries energy-dense so cars can run farther
on a single charge. Demand is forecast to double by 2030, driven
by use in EVs (electric vehicles).
    Miners have touted low-carbon supplies from Canada to meet
growing demand.  urn:newsml:reuters.com:*:nL1N2GW17Z 

 (Reporting by Jeff Lewis; Editing by Cynthia Osterman)
 ((Jeff.Lewis@thomsonreuters.com; +1 647 200 7236))