Tesla is turning to Mozambique for a key component in its electric car batteries in what analysts believe is a first-of-its-kind deal designed to reduce its dependence on China for graphite.
in what analysts believe is a first-of-its-kind deal designed to reduce its dependence on China for graphite.
The deal is part of Tesla's plan to ramp up its capacity to make its own batteries so it can reduce its dependence on China, which dominates global graphite markets, said Simon Moores of United Kingdom-based battery materials data and intelligence provider, Benchmark Mineral Intelligence. , where Chinese officials are accused of forced labor and other human rights abuses against mostly Muslim ethnic minorities.Story continues
Tesla is making almost a million electric cars per year, and sourcing enough batteries is its biggest constraint, he said. For instance, Tesla has a deal with Panasonic to make battery cells at the automaker's battery factory near Reno, Nevada. China, though, is Tesla's biggest global market. It has a giant factory near Shanghai and sells about 450,000 vehicles per year there, compared with about 350,000 in the U.S., Abuelsamid said.
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