By
Posted on
Tesla is currently in talks with Sociedad Química y Minera de Chile (SQM), Chile’s largest lithium producer, as a possible partner in the development of a processing plant in the South American country.
Chilean development agency Corfo executive vice-president Eduardo Bitran noted that the deal between Tesla and SQM would likely result in a new facility that would aid the Elon Musk-led electric car maker and energy firm in securing the supply of raw material used in lithium-ion batteries.
In a statement to the Financial Times, the Corfo executive vice president stated that Tesla’s interest in Chile would ultimately help the country become a key player in the emerging electro-mobility market. Lithium, after all, is a valuable component of electric car batteries, and it is incredibly abundant in the region. As electric vehicles become more mainstream, however, the prices for battery raw materials have also soared. Thus, in a lot of ways, Tesla’s initiatives at sealing a partnership with SQM will not only result in more battery supplies for its cars; it would help the company’s operating costs as well.
“With an increasing supply of lithium, Chile is key for any company that wants to become global in electro-mobility. Being close to Chile or having a strategic alliance in Chile becomes a strategic factor for a company like Tesla,” Bitran said, according to an FT report.
As the auto industry races to develop and build emissions-free vehicles, lithium-abundant countries such as Chile are set to emerge as valuable partners for the world’s biggest car companies. Like Tesla, Toyota has also expressed its interest in securing a partnership with a lithium provider from the region. Just recently, the Japanese automaker purchased a 15 percent stake in Orocobre, an Argentinian lithium producer, most likely as a strategic initiative to secure lithium resources for its upcoming electric vehicles.
Chile’s lithium industry has the potential to significantly improve the South American nation’s economy. Considering that Chile owns 54 percent of the world’s lithium reserves — around 14.3 million cubic tonnes, it is estimated that the lithium industry can attract as much as $10 billion in investment and up to 10,000 new jobs for its citizens, as noted in a report from the Global Finance Magazine.
Overall, Bitran is quite optimistic about the idea of Tesla investing in a lithium facility in Chile. While talks are still in early stages, the Corfo executive believes that the American company’s initiatives might end up starting a chain reaction that benefits not only the country’s lithium industry. In a further statement to the FT, Bitran asserted that Tesla could, in the future, even manufacture battery cathodes in the South American nation, since Chile has some of the world’s most affordable solar power.
Neither Tesla nor SQM has released a statement about the companies’ possible deal.
Go Solar and eliminate your energy bills. Get a custom solar cost estimate for your home or business from our affiliate partner.
Top Rated Comments (view all)
Discuss: News
Sort By
Join the discussion…
Log in with:
Or sign up with TESLARATI:
0 likes 7 months ago
Sounds like a logical, strategic move on T≡SLA's part. Wishing them best of luck in locking a good win-win deal!
0 likes 7 months ago
Clearly the name of the batteries, "Lithium Ion", might be taken by some to mean that the main element required for their production is lithium, but it's not so! Supply of COBALT is the big problem... it's all mined in the "Democratic" Republic of the Congo... by the Chinese. And it all gets sent to China for purposes other than batteries for Tesla's fancy toys.
This announcement is just an attempt (probably successful in the short term) by the Master of Deception (that's Messiah Musk to the fanbois) to pump the stock price. Nothing more.
TESLA ≡ Terrible Elon Sells Lies AGAIN!
"Neither Tesla nor SQM has released a statement about the companies’ possible deal." ... you bet they haven't... they're happy to let the fans and media speculate and build nothing into something!
This announcement is just an attempt (probably successful in the short term) by the Master of Deception (that's Messiah Musk to the fanbois) to pump the stock price. Nothing more.
TESLA ≡ Terrible Elon Sells Lies AGAIN!
"Neither Tesla nor SQM has released a statement about the companies’ possible deal." ... you bet they haven't... they're happy to let the fans and media speculate and build nothing into something!
0 likes 7 months ago
Sounds like a logical, strategic move on T≡SLA's part. Wishing them best of luck in locking a good win-win deal!
Disagree (see my comment above)
P.S. Nice profile pic... Horseshoe Bend, AZ?
0 likes 7 months ago
It's usually a good idea to check your facts before you accuse others of selling lies - it's *you* that try to sell the lies here...
In fact Tesla/Panasonic sources it's Cobalt on the Phillipines, and not in Congo!
VW, BMW and others though.......
In fact Tesla/Panasonic sources it's Cobalt on the Phillipines, and not in Congo!
VW, BMW and others though.......
0 likes 7 months ago
Disagree (see my comment above)
P.S. Nice profile pic... Horseshoe Bend, AZ?
Thanks for the pic compliment (not for disagreeing particularly in view of Knut Erik’s input correcting yours... ;)). You nailed it. Unmistakably recognizable and incomparably beautiful Horseshoe Bend! :-)
[QUOTE="Knut Erik Ballestad, post: 12210, member: 7926"]It's usually a good idea to check your facts before you accuse others of selling lies - it's *you* that try to sell the lies here...
In fact Tesla/Panasonic sources it's Cobalt on the Phillipines, and not in Congo!
VW, BMW and others though.......[/QUOTE]
Thank you, Knut Erik, for setting the record straight.
I would add that, while cobalt is indeed a key component - I’m convinced not forgotten by T≡SLA & Panasonic... -, it does seem intuitive that Li-ion batteries still require lithium, which is the point of the pursued agreement with the Chileans... and the reason for my post above (you disagreed to).
Please be aware that, while everybody is entitled to their opinions here - and one may always disagree - members may tend to be suspicious of first posters who appear quite intent at T≡SLA-bashing... even with compliments on an avatar pic... :D
0 likes 7 months ago
Clearly the name of the batteries, "Lithium Ion", might be taken by some to mean that the main element required for their production is lithium, but it's not so! Supply of COBALT is the big problem... it's all mined in the "Democratic" Republic of the Congo... by the Chinese. And it all gets sent to China for purposes other than batteries for Tesla's fancy toys.
This announcement is just an attempt (probably successful in the short term) by the Master of Deception (that's Messiah Musk to the fanbois) to pump the stock price. Nothing more.
TESLA ≡ Terrible Elon Sells Lies AGAIN!
"Neither Tesla nor SQM has released a statement about the companies’ possible deal." ... you bet they haven't... they're happy to let the fans and media speculate and build nothing into something!
Check your facts. http://www.responsiblemineralsinitiative.org/about/members-and-collaborations/
0 likes 7 months ago
Please be aware that, while everybody is entitled to their opinions here - and one may always disagree - members may tend to be suspicious of first posters who appear quite intent at T≡SLA-bashing... even with compliments on an avatar pic... :D
Yes, it's fair to be suspicious, I am newly registered here, but I can assure you and those that have responded to me that I am not interested in bashing anyone or anything just for the sake of it. Trouble is, where Tesla is concerned, there is very little about which to be positive... it is a sign of the bull market we are in that Tesla has managed to get away with burning crates and crates of other people's money for so long with nothing to show for it (other than a few big toys and a lot of empty promises). It's also a sign of other things, but I think those points will introduce an unhelpful level of antagonism, so I shall refrain..!
I don't expect any bulls to suddenly change their minds because I say so, but just because I am the way I am, here goes.
On facts...
I admit to slight exaggeration in my statements about cobalt supply (for production of batteries, as opposed to other industrial applications)... it doesn't all come from the Congo... just almost all of it. And almost all of that goes to China (i.e. to neither Tesla nor Panasonic). If anyone can identify any significant sources of cobalt which can be (or have been) secured by Tesla and then brought online quickly enough to support the sort of Model 3 ramp Tesla says is possible (before they tank or before the market contracts - whichever happens first) then please enlighten me.
Some sources, the credentials of which I hope you will find appropriate:
http://www.manufacturingcleanenergy.org/blog-20160413.html
If anyone here is subscribed to Seeking Alpha (that's where I spend a lot of time reading about Tesla - articles from both the bulls and the bears), then look at the articles of John Petersen, who writes extensively and apparently very knowledgeably about the global cobalt supply chain:
https://seekingalpha.com/author/john-petersen/articles#articles
I read the articles in the weeks and months before they (sometimes) disappear behind SA's paywall... if you have any stake in Tesla (the cars and/or the stock) I would advise you to do the same.
I found an alternate source of one of Petersen's article which Malcolm Earp kindly put on LinkedIn for us:
https://www.linkedin.com/pulse/cobalt-cliff-two-dire-warnings-musk-soliloquy-john-petersen-earp/
Disclosure: I have a negligible "forced" long position in TSLA simply by being long LON:IGWD
I also have a strong preference for technology which actually improves the life of humans. Production and transmission of electricity (preferably using atomic fission) is among my preferences, but I'm really not a fan of batteries - I don't believe the economics are there... yet (and if you're the type to believe the Anthropogenic Climate Change Hysteria, then batteries are not great for that, either). But solid state batteries may change all this.
Follow the money, folks... here's TSLA's net cash position, and it's going to be reported even further in the red... when Tesla's board finally get around to releasing the numbers for 4Q2017 ... (credit https://seekingalpha.com/article/4140939-tesla-avoid-distractions)
0 likes 7 months ago
Yes, it's fair to be suspicious, I am newly registered here, but I can assure you and those that have responded to me that I am not interested in bashing anyone or anything just for the sake of it. Trouble is, where Tesla is concerned, there is very little about which to be positive... (...)
If anyone here is subscribed to Seeking Alpha (that's where I spend a lot of time reading about Tesla - articles from both the bulls and the bears) (...)
Regretfully, if your prime source of information is SA, I am not surprised you find it hard to come up with much positive about T≡SLA... ;) For one supportive, encouraging and/or optimistic article about the company, you'll find three (at least) that are written by self-declared T≡SLA bashers and/or shorts. For full disclosure, I take most of the SA inputs with a pound of salt though occasionally have been pleasantly surprised.
Do not misread me, I am not going to play the naive, blind fanboy here. Is there current cash drain record challenging? No doubt about it.... Is everything about the company and their communication in particular, optimal? Of course not. Having said, do I believe they'll come out of Model 3 'production hell' soon and stronger than ever with the incoming incremental margins, absolutely. In addition, the impact Elon and team have on rEVolutionizing the transportation industry will keep on being tremendous and, IMHO, needs to be commended. :-)
0 likes 7 months ago
Regretfully, if your prime source of information is SA, I am not surprised you find it hard to come up with much positive about T≡SLA... ;) For one supportive, encouraging and/or optimistic article about the company, you'll find three (at least) that are written by self-declared T≡SLA bashers and/or shorts. For full disclosure, I take most of the SA inputs with a pound of salt though occasionally have been pleasantly surprised.
Do not misread me, I am not going to play the naive, blind fanboy here. Is there current cash drain record challenging? No doubt about it.... Is everything about the company and their communication in particular, optimal? Of course not. Having said, do I believe they'll come out of Model 3 'production hell' soon and stronger than ever with the incoming incremental margins, absolutely. In addition, the impact Elon and team have on rEVolutionizing the transportation industry will keep on being tremendous and, IMHO, needs to be commended. :)
It all sounds like it could be wonderful, but your belief is stronger than what I could ever have in any enterprise - never mind one like Tesla. Michael, if you have any stake in the company - either the car or the stock - I wish you the very best of luck.
Got your Boring Company Flamethrower yet?!
0 likes 7 months ago
It all sounds like it could be wonderful, but your belief is stronger than what I could ever have in any enterprise - never mind one like Tesla. Michael, if you have any stake in the company - either the car or the stock - I wish you the very best of luck.
Got your Boring Company Flamethrower yet?!
Haha JH. :D Understand this does require quite a bit of faith... which I indeed possess... ;)
My stake in T≡SLA for now is limited to my €1,000 Model 3 reservation I got on 10.10.17 (no stock at this point - other family-related priorities...) which I am confident will ultimately be morphed into an order and a delivery. Since by then... 18 more months from now at least, I may have learned the power of patience, and with my color choice in mind (Midnight Silver) I plan to christen my Model 3 'Midnight S≡R≡NITY'... :)
So, you see, at this stage of my life, I am much more into peacemaking, hence a flamethrower is not anywhere near the top of my list... ;)
Where are you from by the way, your profile is particularly discrete...?
0 likes 7 months ago
Haha JH. :D Understand this does require quite a bit of faith... which I indeed possess... ;)
My stake in T≡SLA for now is limited to my €1,000 Model 3 reservation I got on 10.10.17 (no stock at this point - other family-related priorities...) which I am confident will ultimately be morphed into an order and a delivery. Since by then... 18 more months from now at least, I may have learned the power of patience, and with my color choice in mind (Midnight Silver) I plan to christen my Model 3 'Midnight S≡R≡NITY'... :)
So, you see, at this stage of my life, I am much more into peacemaking, hence a flamethrower is not anywhere near the top of my list... ;)
Where are you from by the way, your profile is particularly discrete...?
Leeds, UK
But spend as a much time as possible in Pyrenees Orientales, climbing Canigou etc.
0 likes 7 months ago
Leeds, UK
But spend as a much time as possible in Pyrenees Orientales, climbing Canigou etc.
Jolly good, as you guys say across the Channel! ;)
You must have seen my location then... Actually still in Belgium now before definite relocation during last week of April! :cool:
0 likes 7 months ago
Clearly the name of the batteries, "Lithium Ion", might be taken by some to mean that the main element required for their production is lithium, but it's not so! Supply of COBALT is the big problem... it's all mined in the "Democratic" Republic of the Congo... by the Chinese. And it all gets sent to China for purposes other than batteries for Tesla's fancy toys.
This announcement is just an attempt (probably successful in the short term) by the Master of Deception (that's Messiah Musk to the fanbois) to pump the stock price. Nothing more.
TESLA ≡ Terrible Elon Sells Lies AGAIN!
"Neither Tesla nor SQM has released a statement about the companies’ possible deal." ... you bet they haven't... they're happy to let the fans and media speculate and build nothing into something!
Hardly,
Most is a byproduct of mining other metals. Yes, it is a horror what happens in places such as the the DRC.
However, there are many places where cobalt and all the other resources in seemingly short supply are available, AT THE RIGHT PRICE, such as Cobalt Ontario, Canada among others. Can we afford prices of critical resources that ensure there are no longer child slave labor or other horrors of the human condition?
or is it will we?
