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Tesla’s increasing lithium needs

Posted on 30 January, 2018
Tesla’s increasing lithium needs

Tesla’s lithium needs are increasingly rapidly due to its battery production ramp-up at the Gigafactory 1 in Nevada to support Model 3 production and other energy storage projects. The Financial Times has learnt that the company is reportedly in talks with SQM, Chile’s largest lithium producer, to secure a sustained lithium supply.   Eduardo Bitran, the executive vice-president of Chilean development agency Corfo, confirmed to the Financial Times that Tesla is discussing the partnership with SQM and that there are potential plans to build “a processing plant in Chile to produce the high-quality lithium it needs for its batteries.” The executive added: “With an increasing supply of lithium, Chile is key for any company that wants to become global in electro-mobility. Being close to Chile or having a strategic alliance in Chile becomes a strategic factor for a company like Tesla.” Bitran says that the talks are still in early stages, but Tesla has been interested in the lithium developments in Chile for years now. Chile is believed to have one of the largest and most accessible reserves of lithium in the world and several mining companies are currently rushing to exploit those resources.