Tesla Inc TSLA -6.35 percent (Get Free Alerts for TSLA) is in talks for making a battery production investment in Canada’s largest province Quebec, Electrek reported Monday, citing Le Journal de Montreal.
What Happened
Quebec is investing heavily to extract minerals that go into the making of electric vehicle batteries and looking for partners who could develop the project.The province had recently disclosed plans to invest between $1.6 billion to $2.4 billion towards extracting metals and minerals such as lithium, nickel, and graphite that are used to make electric vehicle batteries.
A Tesla representative met with Pierre Fitzgibbon, Québec’s economy minister in California last month, as per the report that cited a press manager.
Why It Matters
Tesla and Piedmont Lithium Inc PLL -1.99 percent are reportedly in a deal to source lithium from Sayonna Mining, a company behind a lithium project in Quebec’s Abitibi region.Lithium-ion batteries, which are used predominantly in EVs, have lithium as the electrode material. Lithium, though conferring high energy distribution, is handicapped by limited availability, higher costs, and environmental hazards involved in the mining of this metal.
Price Action
Tesla shares closed 11.99 percent lower at $1,023 a share on Monday.By Rachit Vats
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