Rahul SomvanshiElon Musk has stated that Tesla as a company is more focused on refining lithium than on mining it, as the EV giant plans to begin refining production within a year.
The hard task for Tesla is refining lithium and not finding it because no country has a monopoly on deposits, Musk mentioned during the company’s investor day.
Tesla has already started building the proposed lithium refinery in Corpus Christi, Texas, with the goal of starting production within a year.
The company plans to process lithium concentrates into battery-grade lithium compounds at the Texas refinery.
Tesla has not acknowledged or commented on reports about a takeover of miner Sigma Lithium Corp. amid high demand for the metal which is crucial for powering EVs.
EV-makers have aggressively entered the mining sector to secure a supply chain for batteries as electric-vehicle sales see an upward trend.
Musk said nickel, a key ingredient in EV batteries, is only needed for “aircraft, long-range cars or trucks,” and that the “vast majority of heavy lifting” of EV batteries will be iron-based.
Musk’s statements suggest that Tesla is taking a new approach to securing lithium supply compared to other automakers, who are also investing in mining operations.
Tesla’s keen focus on refining might help the company avoid any environmental impact due to lithium mining, help them improve the battery making technology and secure a sustainable supply chain for EV batteries.
