Automaker Tesla and Chilean lithium miner SQM are “exploring” opportunities to secure “important volumes” of lithium for Tesla’s battery requirements, Reuters reports. That’s not a big surprise given the recent investment by Toyota in an Australian lithium mining project as outlined in Panjiva research of January 16.

Panjiva data shows that Chilean exports of lithium have effectively plateaued after rising just 1.1% in 2017 vs. 2016 at 4,553 tons. By contrast the rising global price of lithium meant the export value per ton of those exports surged 49.8% to $10,634/ton and hit a record of $11,350/ton in October. A potential investment by Tesla, like that from Toyota, may be better dedicated to expanding production than simply trying to outbid the competition.

Chart compares volume of lithium carbonate and oxide exports from Chile to value per ton (based on total customs value of exports). Source: Panjiva

While South Korean buyers continued to lead in 2017, the incremental demand has come from China where importers’ share of tonnage increased to 26.2% from 15.1% in 2015. The losers have been manufacturers in the U.S. whose share dropped to 5.9% from 12.4% and experienced an 11.3% slide in imports vs. 2016.

Chart segments Chilean exports of lithium oxide and carbonate by destination market. Source: Panjiva