NOTICE

LAST EDITED

The information contained in this documents is confidential, privileged and

only for the information of the intended recipient and may not be used, published

or redistributed without the prior written consent of Tesla, Inc.

CRITICAL MINERALS

Battery Supply Chain

November 2020

2C O P Y R I G H T 2 0 2 0 T E S L A , I N C . P R O P R I E T A R Y A N D C O N F I D E N T I A L , D I S C L O S E D U N D E R N D A

Major components of Li-Ion Batteries

Anodes are commonly made of carbon and store

Li+/e- on charge

Cathodes are commonly made from metal oxides

with a layered structure and store Li+/e- on

discharge

Li+ ions carry the charge between the anode and

cathode

Electrolyte conducts Li+ ions between the

electrodes – ions move between the interstitial

space between layers of electrode material

Separator is placed between the electrodes and

allows ionic conduction (Li+) while preventing

electric short circuiting (e-)

e-

ANODE

E.g.: Layered carbon

(graphite)

CATHODE

E.g.: Layered metal

oxides

Li+

Discharge

Li+

Charge

1

2

3

4

5 1 2

3

5

4

3C O P Y R I G H T 2 0 2 0 T E S L A , I N C . P R O P R I E T A R Y A N D C O N F I D E N T I A L , D I S C L O S E D U N D E R N D A

Critical Minerals are major cell cost drivers

Other

Production

costs

Raw material

costs

Housing

Anode

Cathode

Electrolyte

Separator

Lithium

Nickel

Cobalt

Other

Processing

0

50

100

150

200

250

300

Lithium Graphite Aluminum Cobalt Copper Nickel

Year

s

Reserve life of major battery materials

Higher prices required to

deliver increase in global

reserve base

Battery costs driven by

raw material costs…

Raw materials driven by

cathode costs…

Cathode costs driven by

lithium, nickel and cobalt

Battery metals supply are geologically

constrained

Maintains stability during

charge/discharge and

improves battery safety

Enables higher energy

density and longer range

Carries the charge

between the anode and

cathode

4C O P Y R I G H T 2 0 2 0 T E S L A , I N C . P R O P R I E T A R Y A N D C O N F I D E N T I A L , D I S C L O S E D U N D E R N D A

Demand for battery-grade lithium and nickel to increase by ~8X and ~19X respectively

Global battery capacity driven by EV growth in China

… which will increase demand for battery-grade lithium and

nickel by ~10X and ~21X respectively

364

1,348

1,928

66

93

103

27

256

424

46

145

226

0

500

1,000

1,500

2,000

2,500

3,000

2019 2024 2029

GW

h

Planned cell capacity

China Asia (excl. China) Europe North America

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Lithium Nickel Cobalt

To

nn

es

(‘0

00

s)

Cathode raw material demand

2019 2024 2029

~10X

~21X

~5X503 GWh

1,846 GWh

2,696 GWh

Global battery capacity to grow ~5X from 500 GWh to 2.7 TWh

by 2029, driven by EV growth in China…

Source: Benchmark Minerals

5C O P Y R I G H T 2 0 2 0 T E S L A , I N C . P R O P R I E T A R Y A N D C O N F I D E N T I A L , D I S C L O S E D U N D E R N D A

Quality sourcing, manufacturing, and recovery

Value In = Value Out

• 100% of original battery materials remain at end of life

• Metals have infinite closed loop recycling potential

• Recycling technology will enhance knowledge in battery materials processing further fueling innovation

• Continuous iteration of R&D loop will result in reduced costs and improved sustainability of battery life cycle thus reducing mining requirements for resources

• Combines principle of industrial ecology in our factory design

Cathode (Nickel,

Cobalt, Aluminum,

Lithium)

Steel

Copper

Aluminum

Graphite

Plastics

Electrolyte

Closed loop

recycling

potential

Recovered

material

Not currently

recovered

Knowledge

Innovation

Technology