WASHINGTON — The Lake Superior region could be home to as much nickel as Russia or Canada, some of the largest nickel producers in the world, according to estimates by the United States Geological Survey.
A mining company and federally funded researchers are now trying to determine whether Michigan could be a global mineral hub as part of separate hunts for undiscovered deposits that could help meet rising demand in the United States for battery-powered electric vehicles.
Talon Metals Corp. is citing USGS’ estimates — which indicate potential for undiscovered nickel in northeast Minnesota, northern Wisconsin and the western Upper Peninsula — as it prepares to launch its exploration of 400,000 acres of the western U.P., and as it seeks exclusive rights to explore state-owned land in Baraga, Houghton, Iron, Ontonagon and Marquette counties. The company also is working to launch a nickel mine in northern Minnesota that would supply nickel for Tesla Inc. for the next six years.
If the USGS estimates are accurate, the discovery could lead to renewed interest in mining in the Upper Peninsula’s historic mining regions — and spark debates about environmental safety and tribal sovereignty as communities weigh interests in furthering a clean economy with concerns over potential contamination.
The Michigan Geological Survey also is searching portions of the U.P. as part of the first nationwide minerals mapping project USGS has undertaken in around 70 years. Researchers are open to the possibility that nickel and other crucial battery minerals such as lithium, graphite and manganese may also be present in the Upper Peninsula.
Both projects are spurred on by the growing need for minerals to power the country’s transition to electric vehicles and ongoing concerns about reliance on supply chains controlled by China, home to top battery makers and the largest EV market in the world.
Indonesia supplied 42% of the world’s nickel in 2022, according to Benchmark Mineral Intelligence, though much of that is tangled up in Chinese investment and refined using environmentally risky technology. China produced 16%, while Canada and Russia supplied 6% and 5%, respectively.
The projects also come as the U.S. auto industry prepares to capitalize on new electric vehicle incentives passed through the Inflation Reduction Act, which includes big subsidies for companies that source minerals from within the United States and with allies.
“Seventy years ago, ‘critical minerals’ wasn’t in anybody’s vocabulary,” said John Yellich, director of the Michigan Geological Survey housed at Western Michigan University. “We need to understand our battery resources — that’s one of the critical things, particularly for the automotive industry … and we’re looking for any other critical minerals that can be used for other things (to combat) climate change.”
Nickel mining comes with environmental risks due to potential acid leaching from exposed ore, even as mining practices and oversight have improved since the U.P.’s mining heyday. But as international experts demand major near-term changes to prevent the most disastrous effects of climate change, environmental advocates are weighing their concerns.
“There’s a critical need” to ensure sensitive wilderness areas and the Great Lakes aren’t harmed by any future mining there, said Michigan Sierra Club Chapter chair Anne Woiwode. But she added that there is “no question” the country needs to move away from gas-powered cars, trucks and SUVs.
“One of the big questions to be faced is: How do we achieve the clean energy goals without destroying the environment?”
Mid-Continental rift
Around 1.1 billion years ago, North America was splitting apart. A tear started in present-day Kansas, ran up across the Upper Peninsula and down to southeast Michigan, spewing lava and dragging up nickel from the center of the earth.
Over time, layers of sediment settled over the tear and likely left mineral deposits running through the region.
“What we’re exploring is essentially the plumbing system of an ancient volcano,” said Brian Goldner, chief exploration and operating officer at Talon Metals.
