Asia’s No.1 carmaker has developed a magnet that reduces dependence on neodymium, a key rare earth metal used in the world’s most powerful batteries for electric vehicles.
The firm is also trying to halve use of cobalt in batteries from around 20% by raising the proportion of nickel, and it will start researching on development of nearly cobalt-free batteries.
Chile is an obvious place for Tesla's chief executive, Elon Musk, to look for secure supply, as the global lithium mother-lode is in the brine lakes of the country's Atacama desert.
With metals from zinc to palladium trading at multi-year highs, four of the world’s top producers generated combined free cash flow last year of about $87 million a day.