(Kitco News) - Talon Metals (TSX: TLO) informed today that its wholly-owned subsidiary, Talon Nickel (USA) LLC, has been selected as a recipient of the first set of projects funded by President Biden's Bipartisan Infrastructure Law.
The company said that on a cost-share basis and subject to final negotiations, the US Department of Energy (DOE) will provide $114 million grant (estimated to be 27% of total project cost) towards project construction and execution costs for the Battery Minerals Processing Facility in North Dakota.
On July 1, 2022, Talon's wholly owned subsidiary Talon Nickel (USA) LLC submitted an application for US government funding under "Area of Interest 01: Commercial Scale Production of Plants for Domestic Separation of Critical Cathode Battery Materials from Domestic Feedstocks."
The application proposed an ore processing and tailings management facility located at an existing industrial brownfields site in Mercer County, North Dakota, receiving feedstock from the company's underground Tamarack mine in central Minnesota and other potential sources in North America.
The company said that the acquisition of the preferred site in North Dakota is actively under negotiations. Removing the processing facilities from the Tamarack mine site in Minnesota significantly reduces land disturbance and the scope of environmental review and permitting, it added.
"Responsible and sustainable domestic sourcing and processing of the critical materials used to make lithium-ion batteries will strengthen American supply chains, accelerate battery production to meet increased demand, and secure the nation's economic competitiveness, energy independence, and national security," the company said in a statement.
Talon is a base metals company in a joint venture with Rio Tinto on the high-grade Tamarack Nickel-Copper-Cobalt Project located in central Minnesota. Talon has an earn-in right to acquire up to 60% of the Tamarack Nickel Project, and currently owns 51%.
Talon has an agreement with Tesla Inc. to supply it with 75,000 metric tonnes (165 million lbs) of nickel in concentrate (and certain by-products, including cobalt and iron) from the Tamarack Nickel Project over an estimated six-year period once commercial production is achieved.
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