Tesla asks for tax incentives from Australia to boost EV supply chain
- September 7, 2023
- Posted by: Quatro Strategies
- Categories: Asia Pacific, Business & Politics, EVs & Battery Technology
Tesla Chair Robyn Denholm has suggested that Australia should provide tax incentives to develop the country into a battery mineral processing hub. Denholm stated that Australia can do more than just being a “dig and ship” nation. She cited the Biden administration’s Inflation Reduction Act, which provides tax credits to producers, as a “proven mechanism” for attracting the necessary investment.
Australia aims to disrupt China’s dominance in the battery supply chain and released a Critical Minerals Strategy in June. This strategy includes a goal to attract AUD 500 million ($320 million) in foreign investment for projects crucial to the energy transition.
Denholm emphasized that Australia should act quickly to avoid missing the opportunity, as other countries with fewer mineral resources might leapfrog Australia in capturing the most valuable parts of the battery supply chain.
Tesla has been increasing its investments in Australian minerals. In 2023, the company spent over AUD 4.3 billion, more than triple the AUD 1.3 billion it spent in 2021. While Australia produces more than half of the world’s lithium, the majority of it is shipped to China for downstream processing into battery-grade chemicals. Denholm suggested that Australia needs 30 more lithium refining projects to compete on the global stage.
Tesla’s vision is to establish supply chains in every major region, co-located with manufacturing operations. This would help reduce dependence on a single production base, such as China, which currently plays a crucial role in Tesla’s global output.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
China’s steel industry faces billions in lost exports as U.S. tariffs take effect
A multi-billion-dollar supply chain that moves steel from China to the United States through third countries is likely to be disrupted by the 25% tariff imposed by President Trump, set to take effect in early March. The new duty will intensify global competition and eliminate a crucial export channel for China’s struggling steel industry.
Trade barriers previously imposed in 2016 and 2018 largely blocked direct sales of Chinese steel to the U.S., forcing mills in third-party countries with freer trade access to buy cheap Chinese steel and sell it to the U.S. after varying degrees of processing.
EU intensifies diplomatic efforts to foster carbon markets globally
The European Union is intensifying its diplomatic efforts to facilitate the establishment of carbon markets in countries outside the bloc, aiming to promote international trade of CO2 emissions. Wopke Hoekstra, the EU’s climate policy chief, emphasized the importance of this approach in addressing climate…
Copper mine stumbles flip the 2026 balance to deficit
Copper’s narrative has flipped from “ample metal, shaky demand” to “tight feedstock, structural shortfall,” and forecasters are adjusting in real time. A fresh poll now pegs the LME cash average at roughly $10,500 per metric ton in 2026, about 7% higher than mid-year views after a parade of mine disruptions in Indonesia, the DRC, and Chile exposed how brittle upstream supply really is.
Prices have already risen about 25% year-to-date and briefly pushed to 16-month highs after Grasberg’s mudflows halted operations and claimed lives. The consensus market balance has swung from a 2025 surplus to a six-figure deficit, with a deeper gap penciled in for 2026, not because smelters suddenly disappeared but because the ore and concentrate they depend on are arriving late, in smaller volumes, or not at all.