• Wed. Sep 28th, 2022

Elon Musk says Tesla open to purchasing a mining firm – ET Auto

By Ernest Scheyder

Tesla Inc is open to purchasing a mining firm if producing its personal provide of electrical car (EV) metals would pace up worldwide adoption of fresh vitality applied sciences, Chief Govt Officer Elon Musk stated on Tuesday.

Concern is mounting throughout the EV business that there will not be sufficient provide of lithium, nickel, copper and different metals to match demand later this decade, fueling questions on whether or not Tesla would think about leaping into the mining sector.

“It’s not out of the query,” Musk instructed the FT Way forward for the Automotive 2022 convention. “We’ll deal with no matter limitations are on accelerating the world’s transition to sustainable vitality. It’s not that we want to purchase mining firms, but when that’s the one technique to speed up the transition, then we are going to try this.”

Whereas the auto large has EV metals contracts with suppliers throughout the globe, its purpose to provide 20 million autos yearly by 2030 – what Musk known as an “aspiration, not a promise” – would require vastly extra provides of metals. Tesla produced slightly below 1 million EVs final yr.

Different automakers and executives together with Carlos Tavares, the CEO of Tesla rival Stellantis NV, have warned the auto business faces a metals provide scarcity.

Tesla has no expertise with the time-intensive and laborious job of constructing and working a mine, so business analysts have suggested the automaker to give attention to shopping for an current operator.

Many within the mining business have famous that purchasing an current metals producer would price far lower than the $43 billion Musk supplied to personally purchase social media community Twitter Inc earlier this yr.

See also Race for EVs: Japanese carmakers go middle-of-the-road – ET Auto

Tesla has lithium provide offers with Ganfeng Lithium Co , Livent Corp and Albemarle Corp, amongst others. The corporate’s lithium provide take care of Piedmont Lithium Inc was placed on maintain final yr.

Tesla has nickel provide offers with Vale SA and Talon Metals Corp.

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