Tesla Inc (NASDAQ:TSLA) CEO Elon Musk said on Tuesday it is quite possible the electric vehicle maker could buy a mining company to fuel its needs for lithium and other raw materials that go into making rechargeable batteries.
What Happened: The billionaire entrepreneur, who was speaking remotely at the Financial Times Future of the Car conference, said Tesla could go a step further and buy a mining company as a strategic move.
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“It's not out of the question…doing mining or refining, there are possibilities,” Musk said.
“We will address whatever limitations are in accelerating the world’s transition to sustainable energy.”
Why It Matters: Musk’s reiteration comes a month after he said Tesla could directly mine and refine lithium at scale, unless costs improve.
Price of lithium has gone to insane levels! Tesla might actually have to get into the mining & refining directly at scale, unless costs improve.— Elon Musk (@elonmusk) April 8, 2022
There is no shortage of the element itself, as lithium is almost everywhere on Earth, but pace of extraction/refinement is slow.
Tesla has been signing numerous deals to lock its long-term deals for lithium, nickel, and other key raw materials.
Demand for lithium and nickel is expected to rocket further from recent highs as global economies and companies switch to EVs.
Price Action: Tesla closed 1.6% higher at $800 on Tuesday.