Tesla Mining Company. Lithium Prices Rise!
So. Tesla CEO Elon Musk Has Been Tweeting.
This video is not about Twitter. Tesla CEO Elon Musk has been tweeting about the rising cost of lithium lately. As much as I love Tesla I hate Elon Musk’s twitter account.
But, as a Tesla investor and as a investor in the future of transportation and energy storage technologies I have to pay attention to what he says. Especially because his tweets can cause my portfolio to swing wildly in value with a single misplaced word.
IN a recent tweet Musk lamented the rising cost of lithium.
He even suggested that Tesla might get into the mining business.
This might be the only way to help solve shortages of the key raw material that goes into rechargeable lithium-ion electric vehicle batteries.
And it might be the only way to secure a lithium supply in the face of rising competition.
Tesla getting into the mining business might have far reaching implications for the auto industry in general as the industry as a whole pivots towards an electrified future.
Locking up long-term lithium supply will Likely become a strategic imperative for the entire industry?
I think that every auto manufacturer is going to start rethinking their supply chain and many of the companies that used to pay suppliers to provide parts and materials are going to start bringing the capacity in in house
Other auto companies will likely look to backward integrate into the EV battery supply chain. Not merely in imitation of Tesla but primarily driven by securing a long term lithium supply and the profit margin advantages that Tesla enjoys.
These are longer term, almost limitless possibilities for investors to think about.
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9 Comments
There are only 4 real major current producers of Lithium, Albemarle, SQM, Ganfeng and Livent, even if Tesla bought all of them, which they couldn't, they still wouldn't have enough lithium. Lithium isn't rare, but most lithium has impurities that make it uneconomically viable. Anyone that listens to Joe Lowry of the Rock Stock channel knows that Tesla is 2 or more years too late, in fact the Rock Stock channel suggested Tesla should buy Albemarle. It's not good business sense to tell Lithuim juniors you're looking to buy as it gives away your bargaining advantage, so I do wonder if Elon is sandbagging and has already made his move.
As I recall, Elon floated the idea of Tesla doing their own mining on Battery Day.
Bradda Head Lithium
Talon Metals is the only investment to make 🎩
i think they should do it
Love lithoum mines..Sigma Lithium, B of A mentioned could be 4th or 5th largest high grade lithium carbonate deposit in the world thought i read
I don't love twitter, but it is Elon's way to neutralize the mainstream financial media, crooks.
Tesla needs to think outside the box here. My suggestion is that you combine ocean water desalination with lithium mining. There is lithium in ocean water and lithium mining that pumps brine is just pumping what you are left with after desalination: ocean brine. A lot of how you go from brine to lithium is by evaporation of water from the brine, giving you more desalinated water and reducing the issue of pumping concentrated brine back into the ocean. This cuts the costs for both desalination and lithium, is my bet.
creating a lithium mining company from scratch is easier than building a rocket company. Its not a big science or anything. If someone can do it its elon for sure