Tesla Reduces Dependence on Chinese Graphite for Batteries

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] It has been analyzed that the U.S. electric vehicle company Tesla is trying to reduce its dependence on China for graphite, a key mineral in electric vehicle battery manufacturing.

According to the Associated Press on the 17th (local time), Tesla signed a graphite purchase contract last month with Australian mining company Syrah Resources, a key material for electric vehicle lithium-ion batteries.

Syrah Resources operates the Balama mine in Mozambique, South Africa, one of the world's largest graphite mining sites. The graphite mined there is processed at a factory in Louisiana, USA.

Tesla plans to procure graphite from this factory starting in 2025, with an annual purchase volume of 8,000 tons, which corresponds to 80% of the factory's production capacity.

Market experts have diagnosed that Tesla turned to the Mozambique mine to reduce its dependence on Chinese graphite.

Tesla recently also signed a contract to procure nickel for electric vehicle batteries through the U.S. mining company Talon Metals.

Simon Moores, an analyst at Benchmark Mineral Intelligence, a battery material information provider, analyzed, "It appears that Tesla made this contract to break free from China's influence, which dominates the global graphite market, and to strengthen its own battery production capabilities."

He said, "The U.S. wants to manufacture lithium-ion batteries domestically, and Tesla can now procure graphite independently from China through this contract."

This content was produced with the assistance of AI translation services.