The global transition to electric vehicles has driven significant demand for lithium, driving its price up 600% this year.
Tesla and SpaceX CEO Elon Musk urges more people to get involved in the business of refining lithium, one of the key materials in electric vehicle batteries.
“It’s basically like printing money. There are margins of ‘software ‘ in lithium processing right now,” the tycoon said during a call of Tesla’s quarterly investors. “So I would really like to encourage, once again, entrepreneurs to get into the lithium refining business. You can’t miss it,” he added.
According to Musk, it is an abundant resource, however, he highlighted the need to further processing of the material to make the battery cells.
“You have to refine the li to get battery-grade lithium carbonate and lithium hydroxide, which has to be of extremely high purity,” he explained. , Zack Kirkhorn, pointed out that the cost of this alkali metal has increased significantly so Tesla has begun to work internally on refining it.
The global transition to electric vehicles has driven significant demand for lithium, raising its price by 600% this year.
Some experts are concerned that there isn’t enough battery-grade material to go around, so automakers have decided to secure their own supply directly from the source through partnerships.