Tesla negotiations with Chilean lithium supplier SQM

According to the Financial Times, according to the Financial Times, Tesla is currently negotiating with Chile's largest lithium battery producer square. The two sides are negotiating on investment in lithium battery raw materials to increase the lithium of Tesla Model3 electric vehicles. Battery production.

Eduardo Bitran, executive vice president of the Chilean industrial development agency, told the Financial Times that the electric car manufacturer under the leadership of Elon Musk is expected to agree to build a lithium battery raw material plant in Chile to provide high-quality lithium for its electric vehicle lithium battery components. raw material.

If the deal is reached, it marks Tesla's first entry into the lithium battery raw material market. As electric vehicles have become more popular in recent years, the cost of lithium battery components has soared.

Bitran said: "As the supply of lithium raw materials continues to increase, Chile will be the key to the success of any manufacturer who wants to make a difference in the electric vehicle market. Build a good relationship with Chile or form a strategic alliance with Chile. For companies like Tesla, it is an important strategic layout."

At present, global automakers are turning their attention to raw material suppliers to expand electric vehicle production and achieve their respective goals. This month, the Japanese automaker Toyota's trading department has agreed to acquire about 15% of the Argentine lithium raw material company Orocobre.

Chile-based SQM is one of the world's lowest cost and cheapest suppliers of lithium raw materials. This month the company resolved a long-standing dispute with Corfo and plans to quadruple production of lithium by 2026.

Bitran said that although the negotiations between the two sides are still in the early stages, Tesla may invest in processing technology to extract lithium hydroxide needed to produce electric vehicle batteries directly from the brine in the Chilean desert. At the same time, he also believes that because Chile has the world's cheapest solar energy resources, it can also allow partners to produce cathode components for lithium battery components in Chile. Sla is currently working hard to achieve the Model3 mass production target, the company's super lithium battery plant in Nevada has entered the full-speed production stage. Tesla began producing its own lithium batteries in early 2017, but there is still a big gap.

Square meters and Tesla are currently refusing to respond.

Shares in 2017 square meters rose 71% to $55.9. With the increasing demand in the market, the price of lithium raw materials has more than doubled.

The page contains the contents of the machine translation.