Tesla may enter into the mining business for the sake of valuable minerals for batteries

At the annual meeting of shareholders of the company, Tesla CEO Elon Musk said that the company may engage in mining of minerals used in batteries for electric vehicles, if you want to expand your product line and increase production. The comments came after Musk announced plans to create electric pickup truck and set a goal to begin production of all-electric Class 8 truck to the end of 2020. Musk said that these plans depend on the ability of Tesla to produce a lot of lithium-ion cells.

“It makes no sense to increase the complexity of the product, and if we are missing batteries”, said Musk. “This is a difficulty which will not bring benefit.”

Tesla will be to extract minerals by yourself

Huge Tesla factory in sparks, Nevada, was built to extend the global capacity of the battery and, in turn, reduce the cost of electric vehicles. This Gigafactory plant 1 manufactures motors and batteries for the Model 3 and the energy storage Powerwall and Powerpack. Panasonic, the most important partner in this project, makes lithium-ion cells. Then these items are the batteries for Tesla,

At the moment, Tesla plans to coordinate production with the scale of production at the plant. As soon as the company will ramp up production to a “very high level”, it “will consider the option down below in the supply chain and get into the mining business, I don’t know at least a little bit,” said Musk.

“We will do everything that depends on us in order to provide the most rapid scaling”.

Problems with the supplies of Nickel, copper, lithium and related minerals, used in electric batteries, are not new. Last month the head of the procurement division of minerals Tesla said at a closed meeting of the industry conference that the company expects a global shortage of Nickel, copper and lithium in the near future.

Although the focus is on the supply of lithium, copper and Nickel are in the area of vulnerability. Years of underinvestment have led to reduced supplies of copper, prompting many to independently log into this industry in the United States and Indonesia. It is possible that Tesla will also focus on the extraction of Nickel. This mineral Mask forces the company to use more than the cobalt.

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