Tesla asks for tax incentives from Australia to boost EV supply chain

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.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

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.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

End of de minimis exemption sparks sharp drop in Transpacific air cargo

Air freight capacity between China and the United States dropped by nearly one-third this month following the suspension of the “de minimis” tax exemption that previously allowed low-value shipments from China to enter the U.S. duty-free. This abrupt change has significantly impacted a major revenue stream for several major Asian airlines, including Cathay Pacific, China Southern, Air China, and Korean Air.

These carriers have profited in recent years from a boom in cross-border e-commerce, particularly shipments from fast-fashion giants such as Shein and Temu to U.S. consumers. Although a recent 90-day tariff truce between Washington and Beijing has prompted some American companies to resume orders from China, the suspension of the de minimis exemption remains in effect.

Political turmoil deepens crisis for New Caledonia’s nickel sector

New Caledonia’s nickel processing industry is currently facing a severe crisis as a result of ongoing unrest in the territory, which has significantly disrupted operations across major facilities. The unrest, sparked by electoral reform issues in the French-controlled territory, has exacerbated an already precarious situation for…

Battery makers studying sodium-based technology to reduce lithium use

The battery industry is witnessing increased investment in sodium-based technology, signaling a potential disruption in the energy storage sector. Sodium, being cheaper and more abundant than lithium, holds promise for applications in energy storage and electric vehicles…

Stay informed

error: Content is protected !!