Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 2025

Tesla reducing dependence on China with graphite deal

Tesla reducing dependence on China with graphite deal

Analysts say the move is part of a larger push to produce car batteries in the US
Elon Musk’s Tesla has signed a deal to get a key component for electric car batteries outside of China, in an apparent effort to reduce dependence on the Asian nation for graphite.

The car maker is now in business with Australia’s Syrah Resources, which operates a graphite mine in Balama, Mozambique. Graphite is critical for lithium-ion batteries, and Tesla will be buying plenty of it as the agreement signed last month states the Austin, Texas-based company will be buying up to 80% of what Syrah Resources produces. That equates to around 8,000 tons of graphite from their mine beginning in 2025, according to the Associated Press, which first reported the news.

Some market analysts have viewed Tesla’s latest deal as a sign of an overall push to produce its own batteries within the US. Today, China leads the global graphite market.

“The US wants to build enough capacity domestically to be able to build [lithium-ion batteries] within the USA. And this deal will permit Tesla to source graphite independent from China,” Simon Moores of United Kingdom-based battery materials data and intelligence provider, Benchmark Mineral Intelligence, told AP.

Graphite is one of many materials that has been in short supply in recent months, but demand has continued to rise as car manufacturers increase their investments in electric vehicles. Tesla itself produces approximately one million cars a year, meaning it is constantly in need of graphite.

The graphite Tesla plans to purchase will be processed in Louisiana, bringing the material closer to home and cutting down on potential supply-chain issues, which have been ramped by the 1Covid1-19 pandemic.

Tesla has been open about its overall effort to move more components of their production to within the US in the near future. The company was among multiple car manufacturers to ask the US government to waive tariffs on a range of products needed from China. Syrah will supply graphite for an initial four years, and they will be the first US-based source of graphite anodes for car and battery producers.

“Our goal is to localize all key parts of the vehicles on the continent,” Drew Baglino, senior vice president of Powertrain and Energy Engineering at Tesla, said in October during an earnings call.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×