Tesla enters agreement with Mozambique to access EV battery components

Tesla Inc. has signed an agreement with Mozambique to obtain important components for its electric vehicle batteries. Experts believe this is a first-ever attempt by the EV giant to lessen its reliance on China.

The material will be purchased from Tesla’s processing facility in Louisiana, which obtains graphite from a mine that is located in Balama, Mozambique. According to the deal, Tesla intends to buy up to 80% of the plant's production, which could be roughly 8,000 tonnes of graphite per year which is scheduled for 2025.

This acquisition is a part of Tesla's strategy to improve its capacity to manufacture its own batteries and lessen its dependence on China, which is known to be the largest producer of graphite in the world, cited experts keeping track of the company.

For a while now, the United States intends to locally establish enough capacity for lithium-ion batteries, with the recent agreement potentially allowing Texas-based Tesla to source graphite without relying on China.

Notably, the battery industry has been experiencing a graphite supply crisis in recent months. As every major automaker is competing to enter the electric vehicle market, including Tesla, obtaining enough batteries is becoming a challenging task.

Last month, the EV giant had also inked an agreement with Syrah Resources of Australia, which manages one of the world's largest graphite mines. To come closer to self-sufficiency, Tesla is building a new battery manufacturing plant in Austin, Texas.

Tesla also has an agreement with Panasonic to produce battery cells at the EV maker’s battery plant which is located near Reno, Nevada.

In other news, several Indian states have invited Tesla to establish its business locally after CEO Elon Musk revealed that the company is still facing challenges in getting approval to launch vehicles in the country. It is worth mentioning that Tesla sought to reduce import duties last year in an effort to begin selling its products in India.  

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