Tesla to buy more than $1 billion of Australian battery minerals a year

Tesla already sources three-quarters of its lithium feedstock from Australia and over a third of its nickel.
By : Reuters
| Updated on: 02 Jun 2021, 06:19 PM
The US will then focus on processing those metals domestically into battery parts, part of a strategy designed to placate environmentalists. (AP)
The US will then focus on processing those metals domestically into battery parts, part of a strategy designed to placate environmentalists. (AP)
The US will then focus on processing those metals domestically into battery parts, part of a strategy designed to placate environmentalists. (AP)
The US will then focus on processing those metals domestically into battery parts, part of a strategy designed to placate environmentalists.

Tesla said it expects to spend more than $1 billion a year on battery raw materials from Australia given the country's reliable mining industry and responsible production practices.

Robyn Denholm, chair of the US carmaker, said on Wednesday that Australia, which is rich in minerals used for batteries like lithium and nickel, is poised to benefit as developing supply chains for electric vehicle batteries and the green energy age focus on environmental, social and governance (ESG).

"We expect our spend on Australian minerals to increase to more than $1 billion per annum for the next few years," Denholm, an Australian, told a Minerals Council of Australia event.

Tesla already sources three-quarters of its lithium feedstock from Australia and over a third of its nickel, Denham said, without specifying a dollar figure.

Similar Cars

Find More Cars
Hyundai Kona Electric (HT Auto photo)
Hyundai Kona Electric
cc | Electric | Automatic
₹23.79 - 23.98 Lakhs**Ex-showroom price
Maruti Suzuki Baleno Facelift (HT Auto photo)
Maruti Suzuki Baleno Facelift
1197 cc | Petrol | Manual
₹6.5 - 10 Lakhs**Ex-showroom price
Kia Sonet (HT Auto photo)
Kia Sonet
1197 cc | Petrol | Manual | 18.4 kmpl
₹6.79 - 13.55 Lakhs**Ex-showroom price
Maruti Suzuki Dzire (HT Auto photo)
Maruti Suzuki Dzire
1197 cc | Petrol | Manual | 23.26 kmpl
₹5.89 - 9.09 Lakhs**Ex-showroom price
Tata Nexon (HT Auto photo)
Tata Nexon
1199 cc | Petrol | Manual | 17.4 kmpl
₹7 - 13.24 Lakhs**Ex-showroom price

"Australian mining companies do have a good reputation, great expertise, professionalism and are preferred by manufacturers increasingly concerned about meeting both today’s and the future’s ESG requirements," she said in Canberra.

The comments are in line with a new policy underway by US President Joe Biden's Administration to rely on allies to supply of the bulk of the metals needed to build electric vehicles.

The US will then focus on processing those metals domestically into battery parts, part of a strategy designed to placate environmentalists, two administration officials with direct knowledge told Reuters last month.

Australia, alongside Canada and Brazil, are among the countries expected to benefit.

Australia's exports of hard rock lithium known as spodumene are expected to hit A$1 billion ($773 million) this year while its nickel exports are expected to be valued at A$4 billion, government figures show.

Tesla also supplies batteries to Australia to store energy captured from rooftop solar panels which shore up reliability in its energy network. Australia has the world's highest per-capita density of rooftop solar panels.

First Published Date: 02 Jun 2021, 06:19 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city