DOD invests $2.5 million from the 2024 Defense Appropriations Act for research and development.

Talon Metals Corp. is being awarded a $2.47 million research and development contract from the Department of Defense's Defense Logistics Agency (DLA) through its wholly owned subsidiary Talon Nickel (USA) LLC, to support new approaches for extracting nickel, cobalt, and iron from domestic sulfide ores and tailings.

DLA will provide the funding over a 15-month period for Talon to study using unique recycling technologies to produce nickel and iron for cathode active material for lithium-ion and lithium iron phosphate (LFP) batteries.

This research will focus on Tamarack, a project the company is advancing in partnership with Rio Tinto that includes a proposed underground nickel-copper mine in Minnesota and a battery mineral processing facility in North Dakota, both in the early stages of state and federal permitting.

The funding underscores the importance of nickel to defense platforms, as well as China and Russia's dominance in the supply of this critical battery metal.

"China is executing a long-term strategy to control the global nickel market through investing billions of dollars in Indonesian nickel mining and refining. Today, over half the world's supply of nickel is produced by Sino-Indonesian firms and funded by Chinese state banks," said Henri van Rooyen, CEO of Talon. "This funding from the DLA, as appropriated by Congress, enhances the United States' ability to responsibly and sustainably extract nickel from its own mineral resources through new approaches to extraction that can yield high nickel recovery, recovery of by-products and waste reduction. American innovation is required to reduce our dependency on China and Indonesia for critical minerals like nickel."

The R&D contract aims to support an independent domestic nickel supply chain for U.S. defense requirements and battery supply chains at high labor standards, with increased environmental protections and stakeholder participation.

Talon's research project will study sulfuric acid and sodium hydroxide recycling technologies with Argonne National Laboratory's Bipolar Membrane Electrodialysis process, hydrometallurgical precipitation of co-products through neutralization of leachates, and reductive leaching with electrochemical reagent regeneration technology from the Columbia Electrochemical Energy Center.

This two-phase pilot initiative aims to produce nickel for battery CAM, high-quality iron for lithium iron phosphate battery CAM, and recover more nickel lost during the traditional flotation process while also studying the conversion of tailings to valuable co-products including supplementary cementitious material and magnesium carbonate as a way to reduce process waste and enhance value from each ton of ore extracted.

"This funding from the FY 2024 Defense Appropriations Bill was advanced by Senator John Hoeven, who has been a tireless advocate for North Dakota's ability to produce critical minerals," said Todd Malan, chief external affairs officer at Talon. "Senator Hoeven has been focused on how American innovation can be harnessed to make projects like Talon's Battery Mineral Processing Facility in Mercer County, North Dakota, even more competitive against Chinese suppliers. Mercer County is developing into a hub for critical mineral innovations."

Talon's battery materials processing plant was selected by the U.S. Department of Energy for a $114.8 million grant through the Bipartisan Infrastructure Law, and DOD previously awarded Talon a $20.6 million grant to accelerate nickel-focused mineral exploration in Minnesota and Michigan.

There is strong bipartisan Congressional support for reducing American dependence on Chinese imports for critical mineral supply and processing, supporting this and other projects. Talon and the U.S. Geological Survey share views that the Midcontinent Rift in the Lake Superior region is highly prospective for nickel sulfide deposits with potential for district-scale mineralization.