Graphite will be the largest input raw material for Tesla. Should the company choose natural graphite, it would require as much as 126,000 tonnes of flake graphite each year in the form of 50,000 tonnes of the battery-grade material, spherical graphite. An old airfield in Reno, Nevada is rumored to be the favored site for the Gigafactory. This is an increase of 152 per cent on current battery demand for the mineral. It equates to six new graphite mines on the basis of the current 30,000 tpa mine size average and the yield of suitable material gained from the mine. Graphite both natural and synthetic is used as the cathode in a battery. China is the leading producer of flake graphite and the leading processor of battery grade spherical graphite today. But the country is aiming to consolidate operations which could see it withdraw somewhat from the international market place.
Lithium demand up 50 per cent. Lithium, the second largest input mineral by volume, will see demand increase by 25,000 tonnes a year from a Gigafactory at capacity. This is an increase in demand from the battery sector of 50 per cent on 2013 levels. Mined as a mineral and processed into a chemical, lithium is used as the cathode material in both hydroxide and carbonate form. Tesla will not be using rare earths as its cars do not use a permanent magnet. Chile is the leading producer of battery grade lithium today.
Cobalt demand up 17 per cent. Cobalt demand from the battery sector could rise as much as 17 per cent on 2013 levels thanks to Tesla plans. This is the equivalent of 7,000 tonnes a year. The metal is also used as a cathode material in lithium-ion batteries. The leading supplier of cobalt is the war-torn country, the DR Congo in Africa which supplies 55 per cent of the world total. Tesla has stated it does not get its cobalt from the Congo, however of most concern will be the lack of dedicated cobalt mines around the world.