Tesla is hoping to source graphite from Mozambique, Africa, in order to decrease its reliance on China for the mineral, according to MarketWatch.
Last month, Tesla signed a contract with Australia-based mining company Syrah Resources, which also happens to operate one of the largest graphite mines in Mozambique.
Tesla will be able to buy material from Syrah’s processing plant located in Vidalia, Louisiana, which sources graphite from the company’s mine in Balama, Mozambique.
U.S. May Turn to Canada for EV Battery and Mining Needs, Report Says https://t.co/7mTD2eLmyd
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Graphite is a critical element in the development of Tesla’s lithium-ion battery cells, and the company sources the mineral from locations and companies around the world.
While the specific financial details for the deal have not been publicly shared, the move away from the use of mines in China is expected to help reduce environmental concerns, according to Simon Moores of Benchmark Mineral Intelligence.
On the deal, Moores said, “It starts at the top with geopolitics.” Moores continued, “The U.S. wants to build enough capacity domestically to be able to build (lithium-ion batteries) within the USA. And this deal will permit Tesla to source graphite independent from China.”
Tesla was also criticized earlier this month for opening a location in Xinjiang, China, where the country has come under fire for various human rights violations and forced labor against Uyghur Muslims and associated communities in the region.
