Tesla explains its approach to sourcing lithium, nickel, and cobalt directly from mines in impressive detail

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Tesla released absorbing and uncommon details astir its attack to sourcing lithium, nickel, and cobalt straight from mines alternatively of done its compartment suppliers. This attack is going to beryllium captious arsenic companies combat to unafraid those minerals for artillery accumulation to enactment electrical conveyance growth.

While Tesla sources the immense bulk of its artillery cells from suppliers, it really sources a ample portion of the materials utilized to physique those batteries straight from mines.

This attack enables Tesla to person nonstop relationships with miners of captious minerals and helps unafraid proviso portion allowing the institution to show prime intimately and guarantee liable biology and societal sourcing.

Tesla explained successful its latest Impact Report:

While cobalt, nickel, and lithium spell done aggregate processing steps by antithetic companies, immoderate of the much important biology and societal risks successful this proviso concatenation are contiguous astatine excavation sites. Direct sourcing from mining companies allows Tesla to prosecute straight successful section contexts alternatively of having to trust connected aggregate midstream companies that typically beryllium betwixt EV makers and mining. It besides enables much transparent and traceable proviso chains and amended biology and societal data.

Tesla adjacent released immoderate precise uncommon and absorbing details astir the effort.

The automaker says that it had straight sourced implicit 95% of the lithium hydroxide, 50% of the cobalt, and much than 30% of the nickel utilized successful its high-energy density cells (NCA and NCM) successful 2021. The remainder came from deals betwixt the artillery compartment manufacturers and their ain worldly suppliers.

As we antecedently reported, Tesla besides released a list of the 9 mining companies that are supplying those minerals.

Another, little discussed facet of the company’s Impact Report is that it makes it wide however alert Tesla is that mining and its biology and societal interaction are going to go much important challenges for EV adoption successful the future.

The automaker wrote:

Cobalt, lithium and nickel are besides “minerals” – successful that they are earthy materials that are produced done antithetic methods of mining astir the world, often concentrated successful countries that look socio-economic and biology challenges. As known planetary reserves are depleted, these minerals are becoming progressively scarce, and companies look to entree resources successful much distant and challenging locations to conscionable planetary demand. Cobalt, lithium and nickel are besides classified arsenic captious minerals by the United States, European Union and Canadian governments due to the fact that they are indispensable successful enabling a modulation distant from fossil fuels to a low-carbon economy. As a result, the interaction of mining enactment connected the situation and section communities lends itself to greater biology and societal scrutiny from civilian society, policymakers and investors.

In response, Tesla has joined the Initiative for Responsible Mining Assurance (IRMA), and the company’s direct-sourcing attack besides helps guarantee the implementation of those standards.

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