Tesla agreed to buy most of the graphite from the U.S. factory that can be used for batteries

Webmaster's House (ChinaZ.com) December 24 News: Tesla will buy battery-ready graphite produced in most of the planned factories in Louisiana, USA. This is one of Tesla's plans to strengthen its supply chain in the United States.

As a Bloomberg report states, Melbourne-based Syrah Resources Ltd will supply graphite anode materials to Tesla within the first four years. Syrah noted that with the further expansion of the Vidalia plant, Tesla has the option to buy an additional amount of graphite.

Syrah's Vidalia plant is expected to process graphite from Mozambique, effectively making it the first graphite anode source in the United States. That should make the plant a big partner for companies like Tesla, which are betting their future on the rapid growth of the electric vehicle industry and the battery industry.

Bloomberg New Energy Finance predicts that demand for graphite anodes could increase fivefold by the end of this decade, and initiatives such as Syrah's Vidalia plant, which can produce the material in the United States, could have a real impact.

Earlier this month, when Tesla asked the U.S. government to exempt it from tariffs on materials from China, the value of graphite was recently highlighted. Tesla noted at the time that it could not get the required amount of graphite anywhere else. However, it should be noted that by 2025, Syrah's Vidalia plant will initially have an annual capacity of 10,000 tons and will only meet about 3% of the expected battery demand in the United States.

"As a result of Tesla's due diligence process on global and U.S. artificial graphite suppliers, Tesla has concluded that no company in the U.S. is currently able to produce artificial graphite that meets the specifications and capacity required for Tesla's production," Tesla noted.