Tesla has long been seen as a frontrunner in the electric car segment, with a killer combination of smart technology and sustainability. But for all the advancements they’ve made in power and battery efficiency, one question still remains unanswered: where does Tesla get its lithium from?
The answer to this question has become increasingly relevant as demand for lithium continues to surge due to its use in battery production. Fortunately, thanks to Tesla’s widespread network of reliable suppliers, it is now relatively easy to track down the sources of this sought-after raw material.
Unlike other materials, such as steel or aluminum, which are sourced mostly from domestic suppliers, the majority of lithium used in Tesla’s vehicles is imported from abroad. This is largely due to the fact that most of the world’s lithium reservoirs are located in countries like Australia, Chile, China, Bolivia, and Argentina. Moreover, the cost of transporting the raw material and other associated costs are so high that it isn’t economically viable to source from a local supplier.
Australia, one of the largest exporters of lithium, is a major source for Tesla. In 2021, the company signed an agreement with the Empire Lithium Corporation in Western Australia to gain access to raw material from its nearby lithium-producing mine. This agreement has allowed Tesla to ensure a steady and reliable source of raw material and given the company the confidence to move forward with plans to build a production giga-factory.
In addition to lithium sourced from Australia, the company also obtains its lithium from a variety of other countries including Chile, China, Bolivia, and Argentina. These countries, each with their own unique geology and mining industry, have allowed Tesla to maintain a diversified and constant supply of quality raw material.
As the demand for lithium continues to rise, it will be essential for Tesla to maintain reliable suppliers in order to ensure that it can meet its demand. Fortunately, through its impressive international network and its partnership with the Empire Lithium Corporation, the company is well-positioned to remain a leader in the electric car segment for years to come.