Lithium mining today, so why not nickel mining tomorrow? That’s a question which investors in Tesla and other electric car (EV) makers ought to consider as a raw material rush heats up.
Right now, there’s not a shortage of most metals used in EV batteries, with the possible exception of cobalt, which makes Tesla’s decision to stake a claim to its own 10,000 acre patch of lithium-rich clay in Nevada quite interesting.
A second U.S.-focused lithium deal added to the intrigue with Tesla signing a five-year contract with a small company which has plans to produce lithium in North Carolina.
It also led to these questions; how far up the mineral supply chain is Tesla prepared to go to guarantee future supplies, and does it need to become a miner, which means exposure to an entirely new set of business risks?
Securing future supplies of battery metals appears to have become a priority for Tesla which is working towards the release of more affordable EVs.