Tesla to Spend Over $1 Billion Annually for Australian Minerals

Tesla is expecting to spend over $1 billion per year on Australian minerals, due to the country’s responsible mining practices and vast resources, according to a statement from a company chairperson.

On Wednesday, Tesla Chairperson Robyn Denholm said that Australia is slated to gain from developing supply chains for electric vehicle (EV) battery production, due to the country’s expansive nickel and lithium supplies, according to Reuters.

Denholm, who is an Australian herself, said the company expects the amount to increase “for the next few years.”

In a statement to the Minerals Council of Australia, Denholm said, “We expect our spend on Australian minerals to increase to more than $1 billion per annum for the next few years.” Denholm continued, “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.”

Tesla currently receives three-quarters of its raw lithium supply from Australia, as well as more than a third of the company’s nickel, according to Denholm.

Despite the confidence in Australia’s mining practices, Tesla has faced many barriers in acquiring ethically sourced minerals in past searches for ethical mining practices – even being asked last year by indigenous groups in Russia to boycott a company responsible for multiple environmental disasters.

However, in addition to working with Australian miners to source its minerals responsibly, Tesla has also worked with Canadian mining companies, as well as a number those of other countries, amidst the highest demand yet for EVs across the world.