Forget China, Tesla Buys Electric Battery Raw Materials from Mozambique


Tesla has begun to shift the use of raw materials for its electric car batteries from China to Mozambique. Photo/doc

LONDONTesla began to shift the use of raw materials for electric car batteries from China to Mozambique. This was done after Tesla signed an agreement with Australia’s Syrah Resources.

It is known that Syrah Resources Australia is the operator of one of the world’s largest graphite mines in the South African country. Under the agreement, Tesla will buy 80 percent of the graphite production at the mine.

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Quoted from Autoblog, Monday (17/1/2022), the deal is part of Tesla’s plan to increase its capacity to make its own batteries so as to reduce its dependence on China.

“China currently dominates the global graphite market,” said Simon Moores of UK-based battery materials intelligence and data provider Benchmark Mineral Intelligence.

Moores said, switch Tesla to Mozambique because there are geopolitical considerations in the agreement. The US wants to increase its domestic lithium-ion battery production capacity.

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“This deal will allow Tesla to source graphite apart from China,” he said.