Tesla Reveals Battery Metals Approach
- May 10, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
Tesla released its Impact Report, which revealed details about its approach to supplying lithium, cobalt and nickel directly from their source instead of through cell suppliers. Tesla’s approach could become critical as companies fight to secure those minerals for battery production to support electric vehicle (EV) growth.
While Tesla buys the vast majority of its battery cells from suppliers, it sources a large part of the materials used to build those batteries directly from mines.
Tesla says this approach enables the company to have a direct relationship with the miners of critical minerals and helps secure supply while allows it to monitor quality closely and ensure responsible environmental and social sourcing.
The report says that the company had directly sourced over 95% of the lithium hydroxide, 50% of the cobalt, and more than 30% of the nickel used in its high-energy density cells in 2021. The rest of the supplies came from deals between the battery cell manufacturers and their own material suppliers.
The report also suggests that Tesla is aware of mining industry’s environmental and social impact, which the company believes are going to become more significant challenges for EV adoption in the future.
In response, Tesla has joined the Initiative for Responsible Mining Assurance (IRMA), and the company’s direct-sourcing approach also helps ensure the implementation of those standards.
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