Lithium is a chemical element, which has long been used to produce batteries. The reason being is due to their high-energy density and low maintenance, which makes them long-lasting and high-performing. Therefore, when the news broke years ago that electric cars will be a new way forward for driving, manufacturers were looking to source the most reliable and cost-effective chemical element to power their batteries. Thus, lithium was the answer.Tesla is one company that is very lithium-focused. All cars from Tesla are powered using lithium, which makes some of their models reliable enough to cover more than 400 miles in range, such as the Model S Long Range.On that note, let's take a look at where Tesla sources its lithium from.
The Plan For Tesla Is To Be Self-Efficient
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Elon Musk, the founder of Tesla, is a highly influential popular figure in the world of electric cars. Since his introduction to the EV market with the Tesla Roadster, he has increased his fanbase and customer base quicker than any other EV company. Tesla models are some of the most reliable due to their high range. Likewise, they are extremely popular for their appearance and unique features, such as dancing doors.
Nonetheless, the key feature of EVs is the battery. With the batteries being the main component of the car when it comes to performance and reliability, many people wonder where Tesla sources the chemicals to produce these impressive batteries. The EV world knows that Tesla has previously had agreements with companies such as Pure Energy Minerals in 2015 and Kidman Resources in 2018. These short-term agreements allowed Tesla to continue producing its EV cars.
Previous news reported that Elon Musk purchased over 10,000 acres of clay deposit land in the desert of Nevada. This will eventually allow the company to become self-sufficient and produce its own lithium to make its batteries with. Although this is a great idea, the news is that it could take around four years to build.
Until Then, Where Are They Getting Their Lithium From?
Until the great idea comes to finalization, Tesla is sourcing its lithium from China's Ganfeng Lithium Co Ltd. Ganfeng is the world's top lithium company when it comes to market capitalization. Starting from 2022, the company will provide lithium batteries to Tesla for three years. We assume if the plan goes well, then the partnership will continue.
Due to the EV market exponentially increasing, lithium is in high demand. Thus, Tesla has secured this deal with the knowledge that if they don't agree to some sort of deal, they might run out of sources.
In our opinion, Elon Musk is a clever guy and knows what he is doing when it comes to lithium agreements. Therefore, this three year deal with Ganfeng might be the stepping stone before finalizing his Nevada location, whereby he will then make Tesla self-sufficient for its lithium needs.