Tesla EV Revolution Draws Lithium Supplier to the Neighborhood Near Giga Nevada

Tesla EV Revolution Draws Lithium Supplier to the Neighborhood Near Giga Nevada

Featured image: Lithium Americas

Tesla is the world leader in the production of electric vehicles, and with each passing day, the company's influence on the automotive market is becoming more obvious.

In order to produce electric cars in large volumes, Tesla needs a large number of batteries. We know that the company has supply contracts with LG Chem and CATL, and also has their joint production agreement with Panasonic for Giga Nevada. Tesla also plans to start its own production of batteries as part of the Roadrunner project.

Lithium is one of the key elements in batteries and a consistent, plentiful supply is a major factor in trouble-free production.

On July 30th, Lithium Americas published the Draft Environmental Impact Statement for the Thacker Pass lithium project. The Thacker Pass Project is a pre-feasibility stage lithium project located in Humboldt County in northern Nevada, USA. Initial Phase 1 production capacity of 30,000 tpa of battery-grade Lithium Carbonate is planned to commence in 2022 and to increase in Phase 2 to 60,000 tpa for 2026.

Given the mine's proximity to Tesla, there is a better than low probability Lithium Americas could supply the company with lithium. Both companies would likely greatly benefit from such an agreement. Lithium Americas needs additional capital to develop the mine, and Tesla needs a reliable supplier of lithium.

However, there is another interesting detail that may change the angle at which we view this issue. In addition to developing the mine and producing lithium, the project will include a "Construction and operation of a battery production facility," according to documents filed by Lithium Americas with the Bureau of Lands Management. The document states:

"The battery manufacturing facility would be sized for 10 Gigawatt hours of annual all-solid-state batteries production in Phase 1."

Source: Bureau of Lands Management.

In fact, Giga Nevada is just a 3-hour drive from the Thacker Pass, which will mine and process lithium and also produce battery cells. If Lithium Americas becomes a supplier of lithium or batteries for Tesla, it will be a very profitable partnership.

© 2020, Eva Fox. All rights reserved.


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Article edited by @SmokeyShorts, you can follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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