Tesla CEO Elon Musk said the company may buy a mining company. On the same day, Musk participated in the 2022 Future Car Summit hosted by the British “Financial Times”. He said through a remote video that Tesla is willing to produce the metals needed for electric vehicles (EVs) to accelerate the global adoption of clean energy technologies. Acquire a mining company.
Growing concerns across the electric vehicle industry that supplies of lithium, nickel, copper and other metals may not be enough to meet demand over the next decade have fueled speculation about whether Tesla will consider a foray into mining.
It’s not impossible, Musk said at the summit. “We will do everything in our power to address constraints in accelerating the global transition to sustainable energy,” he said. “We don’t want to buy mining companies, but if that’s the only way to accelerate the transition, then we will .”
While Tesla has contracted global suppliers to make electric vehicles metal, its goal of producing 20 million vehicles a year by 2030 will require more metal supplies. Last year, Tesla produced nearly 1 million electric vehicles.
Other automaker executives, including Carlos Tavares, chief executive of Tesla’s rival Stellantis NV, have also warned that the auto industry faces a shortage of metals. Tesla has no experience in the laborious business of building and operating mines, so industry analysts have suggested the company focus on acquiring existing mining operators.
Many in the mining industry have pointed out that buying an existing metal producer would cost far less than buying Twitter, which Musk plans to buy for $43 billion. Tesla has lithium supply deals with companies including Ganfeng Lithium, Levent and Albemarle, but its lithium supply deal with Piedmont Lithium was shelved last year. Tesla also has nickel supply agreements with Vale SA and Talon Metals.