The head of Tesla called for more investment in lithium mining in order to close the gap between the demand and supply of this metal caused by the use of electric vehicles. Elon Musk calls the shortage of lithium, necessary for the production of electric vehicle traction batteries, the main limiting factor holding back the development of the electric vehicle industry.
“We need to help metallurgy in this [в добыче лития]. I would definitely encourage entrepreneurs who are trying to get into the lithium business. Lithium reserves are the key reserves for us at the moment.”– Bloomberg quotes him as saying.
The global lithium price index is up 280% in 2021 and another 127% in the first quarter of 2022, according to Benchmark Mineral Intelligence. This increases the costs of electric vehicle manufacturers. In addition, lithium production is concentrated in a small number of countries, which creates the risk of interruptions in the supply of the metal. Thus, Australia and Chile account for 81% of world production.