Tesla is now a reluctant lithium refiner

The supply chain for battery-grade lithium has become shaky. The metal is a key commodity component in most EV and storage batteries, and Tesla’s products are no exception. Persistent insecurity around lithium supply has caused the company to vertically integrate certain links of the battery supply chain.

Most recently, Tesla announced it would break ground on a lithium refinery near Corpus Christi, Texas in May, because, as Musk put it on the earnings call, “the choke point is much more on refining capacity than it is on mining.” He continued, “We will have, by far, the most lithium refining capability…in North America, I think.”

But Musk stressed that this is not a business Tesla wants to be in. “Can other people please do this work?” he pleaded. “That would be great. We’re begging you. We don’t want to do it. Can someone please? Like instead of making a picture-sharing app?”