Fatema Sulaiman Al Futaisi

132440

1. The geopolitical risks associated with dealing with Russia and China would be one of Tesla's
main challenges in this regard. Both countries have complex political relationships with the
United States, and any tensions between them could have an impact on the lithium supply
chain. Furthermore, given the complexity of international trade, there may be regulatory
barriers and compliance requirements that Tesla would have to navigate. For their electric
vehicles, Tesla, like many other companies, relies heavily on lithium-ion batteries. The majority
of the world's lithium supply is currently sourced from Australia, Chile, and Argentina, but other
sources are being investigated. While Russia has substantial lithium reserves, it is unclear how
viable and competitive its lithium mining industry is in comparison to other established
producers. Furthermore, any agreement for Russian lithium with a Chinese company would
have to take into account potential geopolitical risks and regulations, as well as logistics and
transportation costs. In addition, Geopolitical risks would have to be carefully assessed in the
case of a potential agreement between a Chinese company and Tesla for Russian lithium.
Considerations would include trade tensions, economic sanctions, and political instability, all of
which could have an impact on the lithium supply chain. Furthermore, transportation costs and
logistics would need to be assessed, as Russian lithium would have to be transported from its
source to the buyer, which would almost certainly involve multiple modes of transportation,
such as rail, sea, or air. It is also worth noting that the quality of the lithium itself may be a
concern, as it may not meet the same standards as lithium sourced from other countries. This
could potentially impact the performance and safety of Tesla's vehicles and may require
additional quality control measures to be implemented. Finally, a number of factors, including
the quality, availability, and cost of lithium, as well as the company’s business objectives and
risk tolerance, would determine whether Tesla should enter into a deal with this Chinese
company for Russian lithium. Any decision should be based on a thorough analysis of these
factors and consultation with experts in the field. In addition, any decision to enter into an
agreement for Russian lithium would require a thorough analysis of the risks and benefits
involved, as well as an assessment of the potential impact on the company's long-term strategy
and profitability.
Fatema Sulaiman Al Futaisi
132440

2. There are many challenges that Tesla faces in producing batteries on cobalt supplies,
including Political challenges such as political instability, as the rush of cobalt led to an increase
in cases of conflict, corruption, and child labor in the Congo. Accordingly, it can be argued that
political instability and war in the Congo could create supply chain risks for Tesla with regard to
cobalt, an important component of electric vehicles. In addition to economic factors such as
changes in prices and taxes. Moreover, lower battery costs, inflation, interest rates, and labor
costs are also important economic factors that have a potential impact on auto manufacturers.
Social factors focus on workers in the Republic of the Congo, including children who are
affected by unsafe conditions, which violate human and child rights. In addition to hiring armed
men, this makes the manufacturing place dangerous and unsafe. Technological factors, which is
the lack of technological equipment in Congo, leading to the use of hand tools, and this in turn
poses danger and violence to workers. Environmental factors: Waste from mining cobalt and
other minerals can pollute water, air, and soil, resulting in reduced crop yields, food and water
pollution, and respiratory and reproductive health problems. Legal factors such as lack of
regulations and strict rules with the Republic of Congo such as health and safety, and human
and child rights. To solve all these problems, Tesla must make plans such as:

Producing batteries without cobalt or a low percentage of it, as it begins to search for
partnerships to provide an alternative to producing its batteries. In addition, amending the
rules, regulate ions and policies of Tesla regarding the production of batteries so that they are
in solidarity with children and human rights and that they are free from conflicts in their
factories. Moreover, the Republic of the Congo asked private companies to help solve mining
problems, and this, in turn, would help solve many problems for Tesla.