Saudi Arabia in Talks with Tesla for Electric Vehicle Manufacturing Plant
Saudi Arabia is in discussions with Tesla to establish an electric vehicle manufacturing plant in the Kingdom. This is part of Saudi Arabia’s ambitious plan to secure minerals required for electric vehicles.
Progress of Negotiations
According to sources from the Wall Street Journal, familiar with the matter, talks between Saudi Arabia and Tesla are ongoing.
Riyadh has offered Tesla the opportunity to purchase specific quantities of metals needed for their electric vehicles from countries like Congo. The Congolese government was contacted by the Saudis in June last year for mineral supplies. Congo is responsible for about 70% of global cobalt production.
Proposals Being Considered
One of the proposals being considered by Saudi Arabia is to expand financing for commodities trading giant Trafigura. Trafigura owns a cobalt-copper project in Congo, which currently operates inefficiently. However, it could potentially aid in supplying Tesla’s car plant in Saudi Arabia.
Potential Benefits for Tesla
If the deal with Saudi Arabia is successful, it could significantly contribute to Tesla’s goal of selling 20 million vehicles annually by 2030. This is a substantial increase from their current production of about 1.3 million vehicles in 2022.
This information was sourced from the Wall Street Journal.