Tesla Inc. wants to support Australian miners critical to facilitating the country’s involvement throughout the electric vehicle supply chain, including possible EV manufacturing.
Tesla Chairman Robyn Denholm voiced support for the country’s mining sector at a June 2 Minerals Council of Australia event in Canberra, the nation’s capital. Denholm is an Australian who was appointed chair of the Tesla board in November 2018, after joining in 2014.
Denholm said the carmaker expects to increase spending on Australian minerals to more than $1 billion per annum “in the next few years.”
This is because “at the heart of everything we do in our quest to accelerate the transition to sustainable energy is the lithium-ion battery,” for which demand will grow at 37% CAGR in the decade ahead, Denholm said, citing estimates by consultancy McKinsey & Co.
Three-quarters of Tesla’s lithium feedstock and over one-third of its nickel is sourced from Australia, the chair said. The cost of the materials comprise most of the battery costs, while the cathode is the most expensive part of the battery and most of the fixed costs are from nickel and lithium.
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