Tesla Inks Deal to Get Key Battery Component Outside China

FILE - A Tesla Supercharger station in Buford, Ga, on April 22, 2021. (AP Photo/Chris Carlson, File)
FILE - A Tesla Supercharger station in Buford, Ga, on April 22, 2021. (AP Photo/Chris Carlson, File)
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Tesla Inks Deal to Get Key Battery Component Outside China

FILE - A Tesla Supercharger station in Buford, Ga, on April 22, 2021. (AP Photo/Chris Carlson, File)
FILE - A Tesla Supercharger station in Buford, Ga, on April 22, 2021. (AP Photo/Chris Carlson, File)

Tesla is turning to Mozambique for a key component in its electric car batteries in what analysts believe is a first-of-its-kind deal designed to reduce its dependence on China for graphite.

Elon Musk's company signed an agreement last month with Australia's Syrah Resources, which operates one of the world´s largest graphite mines in the southern African country. It's a unique partnership between an electric vehicle manufacturer and a producer of the mineral that is critical for lithium-ion batteries. The value of the deal hasn't been released.

Tesla will buy the material from the company's processing plant in Vidalia, Louisiana, which sources graphite from its mine in Balama, Mozambique. The Austin, Texas-based electric automaker plans to buy up 80% of what the plant produces - 8,000 tons of graphite per year - starting in 2025, according to the agreement. Syrah must prove the material meets Tesla´s standards.

The deal is part of Tesla's plan to ramp up its capacity to make its own batteries so it can reduce its dependence on China, which dominates global graphite markets, said Simon Moores of United Kingdom-based battery materials data and intelligence provider, Benchmark Mineral Intelligence.

"It starts at the top with geopolitics," Moores said. "The U.S. wants to build enough capacity domestically to be able to build (lithium-ion batteries) within the USA. And this deal will permit Tesla to source graphite independent from China."

Moores said producing the batteries in the U.S. will reduce some of the questions Tesla is facing about its ties to China, where there are environmental concerns at some mines. The automaker also has set up a showroom in the region of Xinjiang, where Chinese officials are accused of forced labor and other human rights abuses against mostly Muslim ethnic minorities.



Taiwan Cultivates Young Overseas Chip Talent with Summer Camps, University Courses

Students dressed in white protective suit and a face mask visit a clean room as part of a summer camp organized by US chip designer Synopsys with the goal to attract more youth to Taiwan's semiconductor industry, in Hsinchu, Taiwan July 18, 2025. (Reuters)
Students dressed in white protective suit and a face mask visit a clean room as part of a summer camp organized by US chip designer Synopsys with the goal to attract more youth to Taiwan's semiconductor industry, in Hsinchu, Taiwan July 18, 2025. (Reuters)
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Taiwan Cultivates Young Overseas Chip Talent with Summer Camps, University Courses

Students dressed in white protective suit and a face mask visit a clean room as part of a summer camp organized by US chip designer Synopsys with the goal to attract more youth to Taiwan's semiconductor industry, in Hsinchu, Taiwan July 18, 2025. (Reuters)
Students dressed in white protective suit and a face mask visit a clean room as part of a summer camp organized by US chip designer Synopsys with the goal to attract more youth to Taiwan's semiconductor industry, in Hsinchu, Taiwan July 18, 2025. (Reuters)

Dressed in a white protective suit and face mask, Nicolas Chueh listened intently as a guide introduced a series of silver machines used in manufacturing Taiwan's cutting-edge semiconductors. The 16-year-old was among students from eight countries at the summer camp staged to raise interest in Taiwan's most vital industry amid a fast-declining birth rate that could leave tens of thousands of critical jobs vacant.

"I myself really enjoy playing video games. So I'm really just always using these semiconductor products," said Chueh, whose parents enrolled him after he expressed interest.

The camp, organized by US chip design software firm Synopsys, is among several such events staged by chip companies and Taiwanese universities in recent years as demand for semiconductors, which power most electronics and AI servers, surges across the globe.

But for the first time this year, Synopsys, which has significant operations in Taiwan to be closer to the semiconductor supply chain, hosted the events both in Mandarin and English as Taiwan searches for overseas talent.

"There is an urgent need to strengthen STEM education from an early age," said Robert Li, Synopsys's Taiwan chairman, who believes the camps can increase interest in the chip industry and help prime some of its future leaders.

"That is why we are launching this initiative in Taiwan, where its strength in semiconductors meets the challenge of demographic decline. Taken together, it is clear we must act here first."

Given limitations posed by Taiwan's ageing population, Synopsys is also considering hosting camps internationally to spur interest in chip making and designing, he added. The company charges T$33,000 ($1,103) for the English versions and T$10,900 for Mandarin.

Chueh, a dual Taiwan-Belgian national who lives in Singapore, said he views semiconductors as an attractive career choice.

"I want to lean into it to some extent because I think it will be crucial in the future with AI."

SLUMPING BIRTH RATE

Taiwan, which has a population of around 23 million, holds outsized influence over the global semiconductor supply chain, thanks to its chip companies such as Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker, MediaTek, and UMC.

Any decline in the industry poses an existential threat to Taiwan, which faces the threat of invasion from Beijing and draws much of its global significance from the chip behemoths.

But job openings in the semiconductor sector have risen from 19,401 in the second quarter of 2020 to 33,725 in the same period this year, according to 104 Corporation, a local human resources firm.

The industry is grappling with a shortage of both highly skilled professionals, such as IC design and semiconductor R&D engineers, and essential production staff, including operators and assembly technicians.

Filling those jobs locally is becoming harder each year as Taiwan's annual number of births has dropped from over 210,000 in 2014 to around 135,000 in 2024, according to government statistics. STEM graduates have also fallen by around 15% in that period, Ministry of Education statistics showed.

"Growth in Taiwan's semiconductor industry has been quite rapid, faster than what our schools can produce in terms of engineering talent each year," said Leuh Fang, chairman of Vanguard International Semiconductor, a Taiwan-based chipmaker affiliated with TSMC.

'THE FUTURE WORKFORCE'

Last year, the National Taiwan University launched a global undergraduate semiconductor program for foreign students, which included Mandarin courses to help them reach the proficiency needed to stay and work in Taiwan.

The program now enrolls over 40 students from more than 10 countries.

TSMC also began looking toward foreign talent by throwing its weight behind a program in Germany’s Saxony state, which would send German students to study for a semester at Taiwanese universities before interning at TSMC.

Other initiatives are attempting to create interest among children as young as 10.

Taiwan's National Yang Ming Chiao Tung University (NYCU) launched an outreach program in July, backed by TSMC, aimed at making chip science fun through interactive teaching tools and online games.

"The issue everyone is discussing now is where the future workforce will come from," said NYCU President Chi-Hung Lin.

"If they're curious now, they won't reject it later and some may even grow to like this kind of work."