Tesla is turning to Mozambique (Country in East Africa) for an important equipment in its electric car batteries. Analysts believe it is a first such deal designed for reducing its dependence for graphite on China.
Tesla signed an agreement in the previous month with Australia’s Syrah Resources. The value of the deal is not yet released.
Tesla plans to purchase 80% of graphite from mine in Balama, Mozambique. The deal is an important part of Tesla’s plan for increasing its capacity of making its own batteries so it can decrease its dependence on China.
Moores said, “It starts at the top with geopolitics. The U.S. wants to build enough capacity domestically to be able to build (lithium-ion batteries) within the USA. And this deal will permit Tesla to source graphite independent from China.”