Tesla is forecast to spend more than $1 billion a year on raw battery minerals from Australia thanks to our reliable mining industry and responsible production practices, according to a report in The Economic Times.
Tesla chair Robyn Denholm said Australia, which has a rich supply of battery minerals lithium and nickel, is poised to benefit from 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 supply and more than a third of its nickel from Australia, Denham said.
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“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.
The comments are in line with a new policy announced by US President Joe Biden’s Administration to rely on the country’s allies to supply the bulk of the materials required to build electric vehicles.
Australia, Canada and Brazil are among the countries expected to benefit from this plan.
Australia’s exports of hard rock lithium (spodumene) are expected to hit $1 billion this year while its nickel exports are expected to be valued at $4 billion, according to government figures.
