According to the Associated Press on January 16, Tesla is seeking key components of its electric vehicle battery from Mozambique, and analysts believe that the deal aims to reduce its dependence on Chinese graphite.
Tesla signed an agreement last month with Australia's Syrah Resources, which operates one of the world's largest graphite mines in southern African countries. It's a unique partnership between Tesla and a mineral producer that's vital to lithium-ion batteries. At present, the transaction price has not been announced.
Tesla will buy materials from Syrah Resources' processing plant in Vidalia, Louisiana, where graphite comes from mines in Barama, Mozambique. Under the agreement, Tesla plans to buy 80 percent of the plant's production, with 8,000 tons of graphite per year, starting in 2025. Syrah must prove that the materials meet Tesla's standards.
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