Elon Musk urges entrepreneurs 'please refine lithium' as EVs face choke point
Tesla CEO Elon Musk this past week reminded investors of a growing challenge in the US when it comes to the electric vehicle industry — securing refined lithium for EV batteries.
Musk highlighted Tesla's plan for a lithium refinery near Corpus Christi, Texas which breaks ground in May.
Musk highlighted Tesla's plan for a lithium refinery near Corpus Christi, Texas which breaks ground in May.
Currently, much of the world's lithium refining happens in China and is directed at the country's own growing EV market.
But the Biden Administration's push towards greener technologies is about to create massive demand for lithium here in the US.
'Lithium has dropped a lot'
Lithium prices peaked in 2022 and have since fallen more than 50%.
Musk — who last April highlighted lithium prices had risen to "insane levels!," made note of their decline this past week.
"Lithium has dropped a lot. It's worth mentioning that price of lithium has dropped significantly," Musk said on the call.
But the Biden Administration's push towards greener technologies is about to create massive demand for lithium here in the US.
'Lithium has dropped a lot'
Lithium prices peaked in 2022 and have since fallen more than 50%.
Musk — who last April highlighted lithium prices had risen to "insane levels!," made note of their decline this past week.
"Lithium has dropped a lot. It's worth mentioning that price of lithium has dropped significantly," Musk said on the call.
Falling commodity costs are expected to help Tesla's margins as moves from the EV maker to slash the price of its cars in China and the US weighed on profits in its latest quarter.
Despite lithium's decline, however, prices are up about three times from two years ago, and comes at a time when the transition to EVs continues to be a focus for most automakers.
Ford , for instance, recently announced plans to build a new $3.5 billion EV battery plant in Michigan in partnership with a Chinese supplier.
Which sector does lithium have an impact on besides electric vehicles?
$Tesla(TSLA.US$ $NIO Inc(NIO.US$ $XPeng(XPEV.US$
$Lithium Battery Stock(BK1334.HK$
Despite lithium's decline, however, prices are up about three times from two years ago, and comes at a time when the transition to EVs continues to be a focus for most automakers.
Ford , for instance, recently announced plans to build a new $3.5 billion EV battery plant in Michigan in partnership with a Chinese supplier.
Which sector does lithium have an impact on besides electric vehicles?
$Tesla(TSLA.US$ $NIO Inc(NIO.US$ $XPeng(XPEV.US$
$Lithium Battery Stock(BK1334.HK$
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