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Tesla To Secure Lithium For Its Gigafactory From Mexico

Tesla Motors Inc (NASDAQ:TSLA) is interested in buying lithium compound from a mining site in Mexico and has reportedly entered into a deal with two mining companies: Bacanora Minerals Ltd. and Rare Earth Minerals. Since the mine is not functional yet, the companies are required to raise funds for the construction of a mine and processing facilities in two years’ time.

Tesla may provide funding for the site

Both firms project that 35,000 tons of lithium compound (namely, lithium hydroxide and lithium carbonate) will be supplied per year once the mine is up and running. Eventually, the output will expand to 50,000 tons per year, according to the supply contract published by Bacanora.

Once the mine becomes operational, Tesla will purchase a minimum amount of lithium...