Australian mining and battery company inks deal with Tesla

Tesla has chosen an Australian mining company with expertise in battery technology to supply critical materials for the US electric-car giant.

For three years from 2025, Magnis Energy Technologies plans to supply Tesla with 17,500 tonnes of battery materials each year, with the US electric car-maker given an option to purchase up to 35,000 tonnes per annum if car production ramps up.

Magnis says it will source the materials from a mining operation it owns in Tanzania, to be shipped and processed at an upcoming facility planned to be built in the United States.

Tesla investor Sawyer Merritt claims on social media the three-year deal could help power between 225,000 and 500,000 Tesla vehicles annually, while the Australian Financial Review reports the deal is potentially worth billions of dollars.

Australian organisations are often favoured due to their ethical business practices, the country’s stable political environment, and Australia’s favourable taxation laws.

In October 2022, General Motors announced it was teaming up with Queensland Pacific Metals to source materials for its electric-car batteries, while Western Australian-based company GME Resources also announced it would supply to Stellantis – the parent company of 16 car brands, including Alfa Romeo, Citroen, Fiat, Jeep, Maserati, Peugeot, and Ram.

In October 2021, Toyota tapped giant BHP to supply battery materials from a mine in Western Australia.

In 2021, Tesla chairwoman Robyn Denholm said the car-maker expected to spend more than $1 billion annually on raw materials sourced from Australian mining companies.