EV battery nickel product to be produced in the US for the first time

"As we continue to decarbonize the system and electrify transportation, it is more important than ever that our refining processes are respectful of the environment and that work practices are safe. Our MHP product provides both," she said.

The Inflation Reduction Act

Currently, the U.S. has the Inflation Reduction Act (IRA) which offers a $7,500 tax credit to electric vehicles. However, to qualify, some of the minerals in the electric vehicle battery must be extracted or processed in the United States or in the free trade partner countries.

To date, most MHPs have been produced in Indonesia, which is not a free trade partner of the United States, making the source of the product inadmissible to the IRA. 

Furthermore, the mhp manufactured in Indonesia is not of the best quality. It features low concentrations of the essential elements nickel and cobalt (30-40 percent nickel and only 1-10 percent cobalt)

Nth Cycle, on the other hand, claims it will produce an MHP product consisting of over 90 percent of nickel-cobalt hydroxide. The company is also environmentally responsible.

Reduce greenhouse gas emissions.

Canada Post states that its refining process will reduce emissions by over 90% compared to traditional mining processes. It will also address the compliance requirements of the Inflation Reduction Act with respect to domestic procurement and recycled content.

The company has ambitious plans to start production later this year and co-location on client sites.

In January of 2022, electric car company Tesla, which in the past has been criticized by some for being less eco-friendly than it purports to be, signed its first U.S. nickel supply deal, selecting Talon Metals Corp's Tamarack mining project in Minnesota for this task.

“this agreement is the start of an innovative partnership between tesla and talon for the responsible production of battery materials directly from the mine to the battery cathode," said at the time henri van rooyen, heel chairperson.

 "Talon is committed to the highest standards of responsible, 100% traceable production with the lowest integrated carbon footprint in the industry. Talon is pleased to support Tesla's mission to speed up the transition to renewables."