Musk begs for people to refine lithium instead of 'making a picture sharing app'

Published , by TJ Denzer

One of the biggest hurdles to production in the electric vehicle space has been battery production and steady supply of the lithium necessary to prepare the battery packs for them. Because it’s come up against these shortages frequently, Tesla has invested in lithium refining to ensure its own supply. However, during the Q1 2023 conference call today, Musk revealed this is a strenuous endeavor the company would rather not go through. Unfortunately, he also claims not enough companies are doing it, so Tesla continues to have to invest in lithium refining itself.

This statement was made during the Tesla (TSLA) Q1 2023 conference call which took place on April 19, 2023. In a conversation about the production challenges the company faces, the matter of lithium came up, used in the batteries and Megapacks of Tesla’s vehicles and products. There, Musk claimed that the company has bolstered its investment in lithium refinery to the point where he feels Tesla is one of the most productive companies in lithium refining in the world.

Tesla has aggressively worked to bolster its lithium refining and ensure its supply for vehicle production.
Source: Tesla

However, immediately following that claim, Musk also said he would rather other companies would invest in and develop lithium refining, claiming Tesla would rather buy lithium from others rather than process the resource on its own.

“We’re here, ready to buy,” CFO Zachary Kirkhorn added.

This echoes sentiments Musk has shared in the past, claiming lithium refining may as well be a license to print money. Tesla has acted on this sentiment as well, eyeing locations in Texas for lithium refineries, as well as announcing a new Megafactory in Shanghai that will focus specifically on producing Megapack batteries.

Nonetheless, Musk continues to believe that the market for lithium refining is vastly underdeveloped and hugely necessary at this time and hopes that other companies will take up some of the burden of production. It will remain to be seen if that happens, but until then, Tesla seems set to continue taking on the burden until it doesn’t have to.