SUBSCRIBE

CATEGORIES

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

imageStock Markets1 hour ago (Jun 02, 2021 04:41AM ET)

2/2
(C) Reuters. FILE PHOTO: The logo of car manufacturer Tesla is seen at a dealership in London, Britain, May 14, 2021. REUTERS/Matthew Childs/File Photo

2/2

By Melanie Burton

MELBOURNE (Reuters) – Tesla (NASDAQ:TSLA) 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 U.S. 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.

“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 U.S. President Joe Biden’s Administration to rely on allies to supply of the bulk of the metals needed to build electric vehicles.

The U.S. 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.

($1 = 1.2935 Australian dollars)

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

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.