NEWS: Tesla Australia should offer tax incentives to transform the mining nation into a hub for processing the minerals used for EVs.
Tesla is suggesting that Australia should give tax incentives to encourage the development of its battery supply chain. They want Australia to do more than just mine minerals and ship them out. Tesla’s Chair, Robyn Denholm, says that Australia can follow the example of a U.S. law called the Inflation Reduction Act, which gives tax credits to companies investing in climate-friendly projects.
Australia wants to compete with China in making batteries for electric vehicles. The Australian government has a plan called the Critical Minerals Strategy to attract foreign money (about A$500 million) for projects that help the shift to clean energy. Denholm warns that if Australia doesn’t act quickly, other countries could beat them in the battery-making business.
Denholm also mentioned that Tesla has already invested a lot of money (A$4.3 billion) in Australian minerals in 2023, which is way more than what they spent in 2021 (A$1.3 billion). Even though Australia produces a lot of lithium (a key ingredient for batteries), most of it goes to China for further processing. Denholm believes Australia needs 30 more lithium refining projects to compete with other countries.
China is important for Tesla because they make a big chunk of their cars there. Tesla’s big idea is to have supply chains close to their manufacturing centers all around the world.
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