Tesla Said To Be In Talks With Quebec For Investment In Battery Production

Tesla Inc 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.

See Also: Tesla Faces Indefinite Delay On Supply Of Lithium Chemicals From Piedmont

Why It Matters: Tesla and Piedmont Lithium Inc PLL 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 4.92%% lower at $1,162 a share on Monday.