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
U.S. threatens tariff reimposition, demands trade offers within days
The Trump administration has delivered an urgent message to its trade negotiating partners: submit your best offers by Wednesday. A draft letter from the Office of the United States Trade Representative (USTR) signals that Washington is fast-tracking trade negotiations with multiple countries, aiming to secure deals within a tight five-week deadline before its self-imposed July 8 cutoff.
That date marks the expiration of the 90-day pause on the president’s sweeping “Liberation Day” tariffs—broad levies on foreign goods that triggered severe market turmoil earlier this year before being temporarily suspended to allow room for negotiation.
Loss of U.S. waivers puts $100B of asian memory chip capacity in jeopardy
President Donald Trump’s decision to revoke the “validated end user” (VEU) authorizations for TSMC, Samsung Electronics, and SK Hynix marks a decisive break with a quiet compromise that had underpinned their China operations for years. By tearing up these waivers, Washington is signaling it will no longer tolerate even narrow carve-outs that allow foreign chipmakers to operate in China without case-by-case U.S. approval.
The move opens a four-month scramble in Washington, Seoul, and Taipei to craft new mechanisms that can keep the factories running while satisfying U.S. national security hawks. The companies at the heart of this change, Samsung and SK Hynix in particular, are heavily reliant on their Chinese fabs.
Hedge funds bullish on copper stocks, anticipate strong upside in 2024
Several hedge fund managers are expressing bullish sentiments on copper stocks, anticipating significant upside potential in 2024. Funds such as Tribeca Investment Partners, Terra Capital, and Anaconda Invest are positioning for gains this year, citing favorable supply dynamics…