TESLA

Elon Musk admits the company could also become a lithium extractor

Tesla's management has not hidden its interest in signing large contracts with suppliers of lithium, nickel and other raw materials for the manufacture of traction batteries. This week, Elon Musk even took the liberty of declaring the company's willingness to be directly involved in lithium extraction and processing.

On Twitter, in the usual way, the company's boss said yesterday that if the cost of procuring lithium from third-party suppliers doesn't go down, it would be reasonable for Tesla to mine and process lithium independently. Musk began his commentary by reporting that lithium prices were reaching "insane levels". As he explained further on, this element itself is quite common on Earth, but there is not enough production capacity for its processing and purification.

The price of a ton of lithium has risen significantly over the past two decades, with a particularly steep rise compared to 2021. It has jumped 480% in the past year, to be exact. In 2020, Tesla was able to secure lithium mining rights in Nevada, where it has a lithium battery manufacturing facility. The supply of nickel for Tesla's traction batteries is to be arranged in Canada and Australia, and the latter of the countries will also supply lithium for the company's needs.

Elon Musk has also shown interest in cooperating with the authorities in Indonesia, which has large nickel reserves but could not reach an agreement due to fundamental differences. Tesla is very demanding in the technological process of mining minerals – it shouldn't affect the environment too much, and the methods of operation of mining companies in Indonesia are far from perfect. In turn, Indonesia does not want to export only raw materials, the authorities are interested in the development of more complex industries in the country.

Image source: Tesla