I think you're thinking of Cobalt? Lithium mainly is mined in big industrial facilities in Australia and Chile. Not like cobalt wich was in the news for being mined by hand, including with children.
However "new" Lithium Iron Phosphate (LFP) batteries go without cobalt and other rare earth materials (not actually rare btw). Most electric cars use these batteries nowadays including many Teslas.
It's a step in the right direction. It won't stop the countries we exploit from being exploited. But if Tesla goes bankrupt it is one less large company exploiting the global south. And arguably the worst when it comes to Cobalt.