Tesla to inject $1 billion annually into Australia – report
Australia set to benefit from Tesla's sales success, thanks to local mining standards.
Tesla says it will spend more than $1 billion annually on raw materials sourced from Australian mining companies, used to create batteries for its electric vehicles (EVs).
At a Minerals Council of Australia event in Canberra, Tesla chairwoman Robyn Denholm told the audience the electric car company was expecting to spend in excess of $1 billion on lithium, nickel, and other raw materials mined in Australia, according to the Sydney Morning Herald.
Australia is rich in natural resources used in the production of EV batteries, but local mining companies attracted the US car maker due to their high standards in environmental, social, and corporate governance.
Ms Denholm said there was around $5000 of raw materials in each electric car, "and Australia is capable of supplying almost all of it".
The US government is currently looking to implement a new policy of sourcing metals for EV batteries, which is expected to benefit Canada, Brazil, and Australia.
While Ms Denholm urged the Australian mining industry to begin processing materials locally, it's expected the new policy from US President Biden will mandate that metals sourced from American allies are to be processed on US shores for use in its automotive sector.