Photo: Google Creative Commons (Fair Use)
Raw materials used for automotive manufacturing are at an all-time high—don't get me started on pump gas. The ensuing Ukraine-Russia war is the cause, forcing auto manufacturers to either shut down production or seek alternative sources. Tesla Motors has just signed an undisclosed deal with Brazilian mining company Vale S.A. to supply the elusive raw materials needed for EV production, Bloomberg News reported on Wednesday.
When the times get tough, the tough get going. Tesla Motors might be infants in the auto manufacturing world, but they play chess like seasoned professionals. After making repetitive hikes on their new models, the automaker clearly had a backup plan.
According to Bloomberg News, Tesla and Vale S.A., a Brazilian mining company, have signed an agreement to supply the scarce Nickel mineral. Reuters noted the automaker signed the multi-year supply deal with Vale from Canada.
Most Li-ion batteries used in electric vehicles are the NCA type (Nickel-Cobalt-Aluminum). They contain a combination of Nickel and Cobalt—both expensive and mainly sourced from Russia.
While other combinations can work, Nickel is essential for EV batteries since it stores more energy in the cells.
Russia is a key miner of the precious Nickel mineral used to produce EV batteries. With the ensuing war and sanctions, the prices have doubled, forcing EV automakers to hike the costs of their models.
Two years ago, On Tesla Battery Day, as a hunch, CEO Elon Musk asked mining companies to extract more Nickel. Today, the world seems to be lacking the precious mineral. But Tesla seems to have found an alternative solution to the crisis.
Both Tesla and Vale declined to give details about the deal to Reuters' reporters, with the mining company only disclosing it currently supplies 5% of its production to the American EV maker. It plans to increase the quantity to between 30% and 40%.
Compared to other automakers, Tesla seems to be less affected by the automotive industry's ongoing crisis, including the resurge of the global pandemic in China, the semiconductor shortage, and inflationary pressure for raw materials.
According to Bloomberg News, Tesla and Vale S.A., a Brazilian mining company, have signed an agreement to supply the scarce Nickel mineral. Reuters noted the automaker signed the multi-year supply deal with Vale from Canada.
Most Li-ion batteries used in electric vehicles are the NCA type (Nickel-Cobalt-Aluminum). They contain a combination of Nickel and Cobalt—both expensive and mainly sourced from Russia.
While other combinations can work, Nickel is essential for EV batteries since it stores more energy in the cells.
Russia is a key miner of the precious Nickel mineral used to produce EV batteries. With the ensuing war and sanctions, the prices have doubled, forcing EV automakers to hike the costs of their models.
Two years ago, On Tesla Battery Day, as a hunch, CEO Elon Musk asked mining companies to extract more Nickel. Today, the world seems to be lacking the precious mineral. But Tesla seems to have found an alternative solution to the crisis.
Both Tesla and Vale declined to give details about the deal to Reuters' reporters, with the mining company only disclosing it currently supplies 5% of its production to the American EV maker. It plans to increase the quantity to between 30% and 40%.
Compared to other automakers, Tesla seems to be less affected by the automotive industry's ongoing crisis, including the resurge of the global pandemic in China, the semiconductor shortage, and inflationary pressure for raw materials.
Google News