Car manufacturers are dealing with a shortage of raw materials, all over the world. And who has not escaped this crisis is the giant Tesla, dedicated to the production of electric cars.

It turns out that Elon Musk's company lacks nickel for making electric cars. Realizing how scarce the resource is, mining company Kabanga Nickel is looking to raise about $1.3 billion in the market to invest in an ambitious mining project in Tanzania. The main intent is to alleviate the exaggerated demand for nickel seen among vehicle manufacturers.

Nickel, traditionally used in the manufacture of stainless steel, is also a key component in lithium-ion batteries, allowing vehicle manufacturers to reduce the use of cobalt, which is more expensive and has a less transparent supply chain.

"Please mine more nickel," Elon Musk urged the mining companies.

According to former banker, and CEO of Kabanga Nickel, Chris Showalter, discussions for investment are at an accelerated level. "Because of the quality of the project, we have developed substantial interest."

"I would say we are very well positioned to start delivering for Mr. Musk and all the other EVs with strategic battery," Showalter said.

And the company is seeking to secure $950 million in financing for a mine and $350 million for a refinery, which would be developed simultaneously in the northwestern part of the country.

Production of up to 50,000 tons of nickel cathodes per year is expected, as well as smaller quantities of copper and cobalt. The project is expected to come on stream in 2024, with another year to reach a steady state of production.

Competition among electric vehicle companies to secure future supplies puts Kabanga in a "pretty strong competitive environment" while negotiating with investors, the mining company's CEO added.

"The world needs clean nickel and we won't be the only solution, but we are the next fast-growing project," he assumed.

The Tanzanian government has a 16% stake in the project, which was previously owned by Barrick Gold Corp and Glencore.

The Kabanga deposit is located in northwestern Tanzania and is the largest ready-to-operate nickel sulfide deposit in the world, unmatched in scale and grade, with at least 30 years of mine life, and further exploration.