Elon Musk suggests that Tesla may need to enter the lithium industry due to its exorbitant costs.

• Tesla may enter the lithium mining and refining industry due to the escalating cost of the metal, which is crucial for battery production.
• “Price of lithium has gone to insane levels,” Musk tweeted.
• Limited refining resources make it less common for lithium deposits to be found in the US.

Elon Musk may enter the lithium mining and refining industry due to the escalating cost of the metal, which is crucial in battery production.

The cost of lithium has skyrocketed," Musk tweeted. "Although lithium is abundant on Earth, the speed of extraction and refinement is sluggish.

Benchmark Mineral Intelligence reported that the cost of lithium, a metal used in Tesla and SpaceX technology, has increased by more than 480% since 2021.

According to the U.S. Geological Survey, a division of the U.S. Department of Interior, there are indeed deposits of lithium all over the United States.

Lithium is a valuable component in electric vehicle batteries due to its lightweight and low density properties. This results in batteries with a high power-to-weight ratio, which is crucial for transportation.

Musk has previously suggested that Tesla could mine its own lithium.

In 2020, Tesla obtained its own rights to mine lithium in Nevada after a deal to purchase a lithium mining company fell through, according to Fortune, citing "people familiar with the matter."