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Carmakers Are Making Deals With Mining Companies For Dibs On Battery Metals
Carmakers Are Making Deals With Mining Companies For Dibs On Battery Metals-June 2024
2024-02-19 EST 22:10:28

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As carmakers prepare for the shift to EVs, the relationship between miners and carmakers is getting serious. Carmakers are now looking for what calls “intermediary roles” in mining, and they’re partnering up with mining giants to make sure they can get battery metals, like lithium, cobalt and nickel.

That doesn’t mean that and will start rolling into lithium mines with heavy equipment, but it does mean that the two sectors are getting closer than ever and that deserves some scrutiny.

Image for article titled Carmakers Are Making Deals With Mining Companies For Dibs On Battery Metals

The report gives a few examples of the agreements has made so far with mining companies, which makes sense given Tesla’s role as the tip of the EV spear, I guess. From :

Tesla last month struck a with BHP Group after Elon Musk expressed concern about supply due to challenges sourcing the metal in a sustainable manner. The EV maker also agreed to a with Glencore in June and inked a in late March to get involved in a in New Caledonia.

That’s three large mining companies for Tesla alone, but it’s hardly the only carmaker striking deals with miners. The report also mentioned , and :

Stellantis has been in talks with two companies on securing lithium, which the Jeep maker rates as irreplaceable (unlike cobalt, for instance). Its French rival Renault already signed an with Vulcan Energy Resources, which plans to get lithium out of geothermal brines deep below the ground in the Upper Rhine valley in southwestern Germany.

So, just to recap, these are the carmakers and miners cites:

Tesla - BHP Group, Glencore Plc, Trafigura Group

- Vulcan Energy Resources, Controlled Thermal ResourcesRenault - Vulcan Energy Resources

The list not exhaustive, but it’s good enough to give us a running tally of some of the deals, which could become omore commonplace. Keeping track of these relationships is important because even if electric cars help solve some , sourcing the they need can pose problems, too.

One of the best reasons to know which carmakers have cozied up to which mining companies, I think, is to be aware of which car companies will make responsible mining a priority. Yes, “responsible mining” is kind of a misnomer.

Mining is by definition, . But some brands are saying they’re committed to responsible mining practices. Like and , for example. We’ll see how that goes.

Image for article titled Carmakers Are Making Deals With Mining Companies For Dibs On Battery Metals

Image for article titled Carmakers Are Making Deals With Mining Companies For Dibs On Battery Metals

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