Which ASX Battery Metals Companies Have Supply Deals with Tesla?

Which ASX battery metals companies will supply Tesla?

1. BHP (ASX:BHP,LSE:BHP,NYSE:BHP)

Mining giant BHP inked a deal with Tesla in July 2021. The diversified miner will supply nickel to the carmaker from its Nickel West asset in Western Australia.

2. Liontown Resources (ASX:LTR,OTC Pink:LINRF)

In February 2022, junior miner Liontown Resources made headlines after striking a deal with Tesla. The agreement is for an initial five year period set to begin in 2024; it is conditional on Liontown starting commercial production by 2025, and is for about one-third of Kathleen Valley’s startup production capacity.

The company’s flagship Kathleen Valley project in Western Australia is expected to produce an estimated 500,000 tonnes of 6 percent lithium oxide concentrate per year starting next year.

3. Magnis Energy (ASX:MNS,OTCQX:MNSEF)

Graphite developer Magnis Energy and Tesla joined forces this past February. Magnis is set to supply a minimum of 17,500 tonnes per year of battery anode materials to the carmaker for at least a three year term starting in February 2025. Magnis is moving forward with its Nachu graphite project in Tanzania via its subsidiary Uranex Tanzania, and has a processing plant in New York.

4. Piedmont Lithium (ASX:PLL)

North America-focused Piedmont Lithium amended its lithium supply deal with Tesla as soon as 2023 kicked off. The lithium company is now set to supply the US automaker with spodumene concentrate from the past-producing North American Lithium operation — a project Piedmont is developing together with Sayona Mining (ASX:SYA,OTCQB:SYAXF). Under the amended deal, the ASX-listed company has agreed to deliver approximately 125,000 tonnes of spodumene concentrate to Tesla beginning in the second half of 2023 through to the end of 2025.

Piedmont Lithium is also developing its Carolina lithium and Tennessee lithium projects. In Ghana, it has a partnership with Atlantic Lithium (LSE:ALL,ASX:A11), which is developing the Ewoyaa lithium project.

5. Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO)

Last year, Tesla secured nickel supply from the Tamarack project in Minnesota, US. Diversified miner Rio Tinto owns a 49 percent stake in Tamarack, while its joint venture partner Talon Metals (TSX:TLO,OTC Pink:TLOFF) owns the remaining interest. Tesla will get 75,000 tonnes of nickel concentrate over a six year period from Tamarack, which is set to start production in 2026.

6. Syrah Resources (ASX:SYR,OTC Pink:SYAAF)

In 2021, Tesla reached its first graphite supply deal with ASX-listed Syrah Resources, the first vertically integrated natural graphite active anode material supplier outside of China. The miner is set to supply Tesla for four years with natural graphite active anode material from its facility in Louisiana, US.

Syrah Resources, which is developing the Balama project in Mozambique, has also received US$220 million from the US Department of Energy in 2022 to further develop its Louisiana facility.