Musk: Tesla may enter lithium mining and refining business on a large scale

Tesla CEO Musk tweeted on Friday that Tesla could directly enter the lithium mining and refining business on a large scale because the cost of lithium, a key component in making batteries, is already too high.

Musk wrote on Twitter: "the price of lithium has reached crazy levels!" Unless costs rise, Tesla may actually have to move directly into mining and refining on a large scale. There is no shortage of lithium itself, because it is almost everywhere on earth, but the speed of extraction / extraction is very slow. "

Musk made the remarks in response to a tweet. The tweet shows the average price per tonne of lithium over the past 20 years, which has risen sharply since 2021.

Tesla also replied below: "indeed." We have some cool ideas for sustainable lithium mining and refining. "

The price of lithium rose more than 480% last year, according to benchmark mineral intelligence. At the same time, lithium mines do exist across the United States, according to the US Geological Survey.

Friday's tweet is not the first time Musk has put forward the idea of Tesla mining lithium himself.

Tesla won his lithium mining rights in Nevada in 2020 after a failed deal to buy a lithium mining company, Fortune quoted people familiar with the matter as saying.