At the end of 2021, Tesla inked a fresh three year lithium supply deal with top lithium producer Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460). The Chinese company will provide products to Tesla for three years starting in 2022.
The company's main project is large lithium mining projects within Minas Gerais State, Brazil, along a corridor known for having large lithium deposits.
Tesla has previously inked deals with Australia's own BHP, Syrah Resources, Liontown Resources and Piedmont Lithium to supply critical battery resources.
In first place is Albemarle's Greenbushes lithium mine in Australia, which produced 37.5 kilotonnes of lithium in 2022. Former JV partner Tianqi Lithium invested $382 million to increase production in 2018, but Albemarle took full control in 2020 as Tianqi sold assets to pay down debts.
US-headquartered miner Piedmont Lithium has in place an agreement to supply Tesla with 125,000 tonnes of SC6, a high-purity spodumene concentrate suitable for lithium-ion batteries, from the second half of this year until the end of 2025.
Tesla's primary battery cell supplier, Panasonic, is once again looking to build a new factory in the US after recently announcing its plans to construct one in Kansas.
The world's largest hard-rock lithium mine, the Greenbushes mine, is in Western Australia. It is co-operated by the Chinese company Tianqi Lithium and the Australian companies Talison Lithium and IGO Limited.
Who is the biggest lithium producer in Australia. Pilbara Minerals (PLS) is by far the biggest lithium mining company in Australia. Owning the world's largest hard-rock lithium operations, Pilbara produces over 377,000 metric tons of lithium every year.
Lithium is currently produced from hard rock or brine mines. Australia is the world's biggest supplier, with production from hard rock mines. Argentina, Chile and China mainly produce it from salt lakes.
Australian company Magnis Energy Technologies has signed a deal with Tesla to supply the automaker with raw materials for its batteries. Under the terms of the binding agreement, Magnis will supply Tesla with a minimum of 17,500 tonnes per annum (tpa) of anode active materials (AAM) beginning in February 2025.
Australia mines about 53 percent of the world's supply of lithium, and virtually all of it is sold to China. But now the Australian government wants to break the world's dependence on China for processing the minerals driving the green revolution.
Australia is the world's biggest exporter of lithium with most of it going to China, which dominates the lithium-ion battery production market.
Lithium mining is, like all mining, environmentally and socially harmful. More than half the current lithium production, which is very water intensive, takes place in regions blighted by water shortages that are likely to get worse due to global heating.
The process of extracting lithium consumes significant amounts of water and energy, and lithium mining can pollute the air and water with chemicals and heavy metals. In addition, mining lithium can disrupt wildlife habitats and cause soil erosion, leading to long-term ecological damage.
Tesla is reportedly considering purchasing Sigma Lithium, a Brazillian lithium mining company, for an estimated $3 billion. Tesla and its CEO Elon Musk have shown a continued interest in the extraction and refinement of lithium over the past five years.
Argosy Minerals is a lithium stock in Australia. It's hard rock production is in the lithium triangle where the world's largest lithium resources are. 40% of the world's hard rock lithium is mined here at the lowest cost. It also It's production is in Nevada US and Argentina.
Are lithium shares a good investment? While lithium share prices can be volatile due to supply-demand issues that impact the value of lithium as a commodity, the lithium sector does have good long-term growth prospects as the demand for lithium-ion batteries in electric vehicles (EVs) continues to increase.
As the top lithium producer globally, Australia is home to many mines focused on the commodity. Learn where they are and which companies are running them. As the world's largest lithium producer and exporter, Australia is positioned to take full advantage of growing demand.
Investing in lithium stocks can be a good way to gain exposure to the growing demand for this metal. This comes as the adoption of EVs and renewable energy systems continues to increase. Lithium stocks can include mining companies that extract the metal from the ground.
Wesfarmers will start mining lithium at Mt Holland before the end of the year, six years after it exited the thermal coal industry, and expects to have started selling spodumene concentrate to customers in China by this time next year.
A typical EV battery has about 8 kilograms of lithium, 14 kilograms of cobalt, and 20 kilograms of manganese, although this can often be much more depending on the battery size – a Tesla Model S' battery, for example, contains around 62.6 kg (138 pounds) of lithium.
We've reported on JB Straubel, Tesla's former Chief Technology Officer, and his battery recycling company Redwood Materials, several times in this space.
Tesla has signed a deal with Magnis Energy Technologies, an interesting new battery technology company based in Australia.
The chemistry mix and materials of batteries in electric vehicles have become a hot topic in recent years, particularly with key ingredients such as nickel and cobalt being in short supply, and the price of lithium going through the roof.