Tesla is willing to depend less on China and buy graphite used in the production of batteries for its electric cars from Mozambique. The company plans to buy up to 80% of production from 2025
Tesla, which broke sales records last year, announced that it will start purchasing graphite, one of the materials used in the production of batteries for its electric cars, in Mozambique, Africa. The reason is to depend less on China, which is dominant in global graphite markets, in addition to avoiding some controversies. In December 2021, Tesla CEO Elon Musk closed a deal with Australian Syrah Resources, which has one of the largest graphite mines in the world in Mozambique. The value of the contract, however, was not revealed.
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Tesla plans to buy 8 tons of graphite starting in 2025
To become less dependent on China, Tesla will buy ore from Syrah's processing plant in Vidalia, Louisiana, which brings the material from its mine in Balama, Mozambique.
Traditional lithium-ion electric car batteries use metal oxides of cobalt, iron, nickel, graphite, manganese, silica, and titanium oxides, as well as other chemical elements. Tesla's ambitions to no longer need graphite from China are so great that the electric vehicle maker has already said it plans to buy 80% of what the plant in Mozambique produces from 2025, that is, 8 thousand tons of graphite per year.
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Electric battery production in the US will help reduce problems
According to United Kingdom Benchmark Mineral Intelligence battery material data and intelligence provider Simon Moores, it all starts at the top, with geopolitics.
The US plans to build enough domestic capacity to be able to develop electric car batteries domestically, and this deal will allow Tesla to source graphite without relying on China. The electric car battery specialist also claims that producing the component on US soil will help reduce some of the impasses that Tesla has in China, where there are environmental concerns in some mines.
However, the problems with the Chinese do not stop there. In the Xingjiang region, where Tesla has a showroom, Chinese authorities are accused of carrying out forced labor and other human rights abuses against ethnic minorities, mainly Muslims.
Volkswagen shows progress in manufacturing electric car batteries
Volkswagen started the year 2022 by confirming that it will build six new giant electric battery factories spread across Europe, starting with Salzgitter, in Lower Saxony, estimated to begin operations in 2025.
VW will build the second of 6 battery plants in Sweden, in partnership with StartUp Northvolt, where it holds a 20% stake. The other four locations have not yet been defined, but the automaker claims that all units should be operating by 2030, the year established by it as a deadline to have 70% of sales concentrated in fully electric cars.