On April 12, Zhichepai learned that Tesla CEO Elon Musk recently responded to a tweet related to the rapid rise in lithium prices. Lithium-ion is a key element of batteries and is essential for electric vehicles.
tesla
According to the tweet, lithium prices have soared this year, reaching more than $78,000 (about 500,000 yuan), several times that of previous years. These numbers are not particularly important because they may change, but the general trend is that the cost of lithium will increase.
Elon Musk responded that the company may be interested in the mining and refining of lithium in its usual way — directly and on a large scale. "The price of lithium has reached crazy levels! Tesla may actually have to go directly to mining and refining on a large scale unless the costs go up. Musk said. Lithium itself is not lacking, as it is almost ubiquitous on Earth, but the rate of extraction/refinement is slow. ”
Musk
The problem with lithium isn't its shortage – we know it's a rich element that can be extracted/mined in a variety of ways, but the industry's growth lags behind demand. Supply issues are exacerbated by various global challenges, uncertainties and inflationary pressures, which typically affect commodity markets.
Tesla, the world's largest electric car maker, has also recently become a battery manufacturer (making Model 4680 batteries) and is probably one of the largest direct/indirect consumers of lithium.
Tesla's entry into the mining industry could be an outstanding move, it could enter a new market segment, dig deep into vertical integration, basically from a specific element to the final product. Given the company's success so far, it could also transform the entire mining industry.
Lithium is not the only element, it has caused huge price increases. The other is nickel, which is another key element of lithium-ion batteries. Elon Musk has pointed out that nickel may be seen as a new kind of gold. Recently, the spike in nickel prices is believed to be the main reason for the increase in prices of Tesla vehicles (versions powered by batteries with nickel-rich cathode chemistry).