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Tesla in talks with Brazil-based startup to access lithium supply for EV batteries

Tesla Gigafactory 1, where Model 3 battery cells are produced. (Photo: Tesla)

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Tesla is reportedly looking to strike a deal with Sigma Lithium Resources Group, a Brazilian startup company that can supply Tesla with lithium, a key ingredient of electric car batteries.

Sigma was granted a license to begin mining lithium by the Environmental Authority of the State of Minas Gerais, the Council of Environmental Policy on June 11, 2019. The license will allow Sigma to mine hard rock lithium, a crucial piece of automotive-grade lithium-ion batteries, for six-years, making the company an extremely valuable asset for automakers pursuing electric mobility.

It should be noted that Brazil was ranked No.7 among countries with the highest concentration of lithium. A large percentage of the metal, used primarily for the production of glass and batteries, is available in the Minas Gerais area.

Sigma has previously met with Tesla’s current lithium supplier, Ganfeng Lithium, a Chinese-based company that is currently the country’s largest supplier of the material. Tesla reportedly organized the meeting between both parties that unfortunately did not end in a deal. Sigma CEO Calvyn Gardner cited the Brazilian startup company could not meet the financial or production needs that Ganfeng requested.

“There’s a bunch of other things that they [Ganfeng] need, not just prices, but other demands which are a little more complicated that sort of restricts Sigma to almost supplying purely into China. It’s not really what we think we should be doing over the long term,” Gardner remarked at a mining conference in Brazil. 

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Gardner, who calls himself a “fan” of Tesla, was interested in purchasing a Model 3 for himself but ran into roadblocks as Tesla does not have a sales office in the South American country. After import taxes would have more than doubled the cost of the Model 3, he decided to hold off.

Striking a deal with Tesla would directly benefit both companies. Tesla currently uses Gigafactory partner Panasonic as its battery supplier but appears to be seeking to expand it lineup of partners, especially after the Japanese electronics conglomerate has cut its profit outlook due to China’s trade war with the US. Tesla’s acquisition of Maxwell Technologies, an ultracapacitor producer, also hinted at the electric car maker’s plans to pursue battery technology beyond its Panasonic partnership.

It would be beneficial for both Tesla and Sigma to strike a deal directly, with the Brazilian company shipping the lithium to the electric car maker. Unfortunately, this could only happen once makers of cathodes, another primary component of batteries, set up facilities in the United States.

Other large automakers that are bursting into the electric transportation market, such as Volkswagen and BMW, have held talks with Sigma already. Gardner, a graduate of the University of South Africa, is optimistic over the talks with both German automakers. “Having options to get lithium from other jurisdictions and that you can supply over the long term,” he said. “That’s what all of them are interested in and we think Sigma can do that.”

There is no shortage of money or optimism in the lithium mining industry. Sigma has recently received a $30 million loan from Japanese trading group Mitsui, according to Reuters. The money is planned to be used in building Sigma facilities, and will be repaid in a big way: a third of Sigma’s planned output of lithium from its Minas Gerais mining facility.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Insurance officially expands to new U.S. state

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

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Credit: Tesla Insurance

Tesla Insurance has officially expanded to a new U.S. state, its thirteenth since its launch in 2019.

Tesla has confirmed that its in-house Insurance program has officially made its way to Florida, just two months after the company filed to update its Private Passenger Auto program in the state. It had tried to offer its insurance program to drivers in the state back in 2022, but its launch did not happen.

Instead, Tesla refiled the paperwork back in mid-October, which essentially was the move toward initiating the offering this month.

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

It has expanded to new states since 2019, but Florida presents a particularly interesting challenge for Tesla, as the company’s entry into the state is particularly noteworthy given its unique insurance landscape, characterized by high premiums due to frequent natural disasters, dense traffic, and a no-fault system.

Tesla partners with Lemonade for new insurance program

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Annual average premiums for Florida drivers hover around $4,000 per year, well above the national average. Tesla’s insurance program could disrupt this, especially for EV enthusiasts. The state’s growing EV adoption, fueled by incentives and infrastructure development, aligns perfectly with Tesla’s ecosystem.

Moreover, there are more ways to have cars repaired, and features like comprehensive coverage for battery damage and roadside assistance tailored to EVs address those common painpoints that owners have.

However, there are some challenges that still remain. Florida’s susceptibility to hurricanes raises questions about how Tesla will handle claims during disasters.

Looking ahead, Tesla’s expansion of its insurance program signals the company’s ambition to continue vertically integrating its services, including coverage of its vehicles. Reducing dependency on third-party insurers only makes things simpler for the company’s automotive division, as well as for its customers.

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Tesla Full Self-Driving gets sparkling review from South Korean politician

“Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about.”

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Credit: Soyoung Lee | X

Tesla Full Self-Driving got its first sparkling review from South Korean politician Lee So-young, a member of the country’s National Assembly, earlier this week.

Lee is a member of the Strategy and Finance Committee in South Korea and is a proponent of sustainable technologies and their applications in both residential and commercial settings. For the first time, Lee was able to utilize Tesla’s Full Self-Driving technology as it launched in the country in late November.

Her thoughts on the suite were complimentary to the suite, stating that “it drives just as well as most people do,” and that “it already feels like a completed technology.”

Her translated post says:

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“Finally, today I got to experience Tesla FSD in Seoul. Thanks to the Model S sponsored by JiDal Papa^^, I’m truly grateful to Papa. The route was from the National Assembly -> Mangwon Market -> Hongik University -> back to the National Assembly. Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about. Once it actually spreads into widespread use, I feel like our daily lives are going to change a lot. Even I, with my license gathering dust in a drawer, don’t see much reason to learn to drive a manual anymore.”

Tesla Full Self-Driving officially landed in South Korea in late November, with the initial launch being one of Tesla’s most recent, v14.1.4.

It marked the seventh country in which Tesla was able to enable the driver assistance suite, following the United States, Puerto Rico, Canada, China, Mexico, Australia, and New Zealand.

It is important to see politicians and figures in power try new technologies, especially ones that are widely popular in other regions of the world and could potentially revolutionize how people travel globally.

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Tesla dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

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Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

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However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

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The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

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