Tesla Motors’ China growth hinges on cobalt

It is possible that Tesla, a business widely known for its innovation, would resort to giving away solar energy-powered electricity generating equipment to residents of a community, allowing them to become electricity generators and sell the self-producing electricity to Tesla.

Could such a “scattered supply” of electricity break down the traditional monopoly of national electricity generators on the mainland?

The business journal also pointed out that the key substance used for the production of lithium batteries is cobalt, mainly found in Congo and Cuba. The cobalt deposits in Congo account for over 35% of the world’s total, the journal said.

The cobalt used to make Tesla’s lithium cells is now being sourced from the Philippines, a client of Japan’s Sumitomo Group that sells cobalt to Panasonic. If Musk’s “gigafactory” wanted to produce lithium cells itself, it would have to secure a source supplier bigger than the Philippines.

Read more at: http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140407000108&cid=1206

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