China's BYD Co (OTC: BYDDY) is looking to acquire six lithium mines in Africa, CnEVpost said on Tuesday, citing a source-based report from another domestic media outlet.
What Happened: Shenzhen, China-based BYD has estimated that the six mines have more than 25 million tons of lithium ore, which could meet the demand for 27.78 million vehicles with 60-kWh batteries.
Some of the mines will start shipping next month and are expected to be available for use in BYD's Blade batteries in the third quarter, the report said.
BYD, backed by veteran investor Warren Buffett-led Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B), stopped producing internal combustion engine vehicles in April, saying it would focus solely on plug-in hybrids and all-electric vehicles in global markets.
See Also: Is Tesla Buying A Lithium Mining Company? What Elon Musk Has To Say
Why It Matters: New energy vehicles (NEVs), which include electric vehicles, account for most of BYD's sales in China. BYD is also one of the largest battery makers.
Other EV makers such as Tesla Inc (NASDAQ:TSLA) and legacy automakers such as Ford Motor Co (NYSE: F), and Volkswagen Group (OTC: VWAGY) are rushing to secure supplies for key battery minerals including lithium.
Lithium and nickel prices have rocketed recently, prompting Tesla CEO Elon Musk to say his company could buy a mining company to fuel its needs for lithium and other raw materials for rechargeable batteries.
Price Action: BYDDY closed 1.98% higher at $71 on Tuesday.
