Tesla is looking forward to secure additional supplies of lithium from a key source country.
It has been reported that it is trying to bring on board the biggest lithium producer in Chile to invest in the supply of one of the crucial components for EV batteries.
According to the executive vice-president of Chilean development agency Corfo, Eduardo Bitran, Tesla could invest in the construction of a processing plant in Chile.
However, Tesla is said to be looking to ramp up production of its first mass-model EV, the Model 3, which is way behind initial construction and delivery schedules.
If the EV carmaker does manage to strike a deal in Chile, it would be Tesla’s first such deal for securing its key material for batteries.
The soaring prices of lithium and the rise in demand for batteries has compelled many legacy automakers to roll out electric vehicle.
Tesla according to reports, may invest in technology to produce lithium hydroxide on site in Chile’s brine.
It could also partner with a company to manufacture battery cathodes in the South American country, that boasts some of the world’s cheapest solar power, Bitran said.
According to him, this is not the first time that reports have surfaced about Tesla’s consideration of possible lithium ventures in Chile.