Tesla figurehead Elon Musk has indicated that Tesla may have some interest in getting into the mining business as a way of scaling production of electric vehicles quicker.
In what was largely an off-hand comment, Business Insider has quoted Musk talking about the company’s potential mining dreams during Tesla’s annual presentation to shareholders overnight.
“We might get into the mining business. I don’t know,” Musk was quoted as saying. “We’ll do whatever we have to to ensure that we can scale at the fastest rate possible.”
The line will be enough to get companies involved in the mining and production of minerals such as copper, lithium and nickel excited.
It has been reported that Tesla is worried by a global underinvestment in mining in these areas, with Reuters reporting in May that the company’s global supply manager was particularly worried.
There are estimates, for example, that EVs generally use twice as much copper as regular vehicles.
Of more excitement locally, the Reuters piece indicated that Tesla was thinking of either investing in an Australian or US operation.
Interestingly, ASX-listed ioneer (ASX:INR) was invited to the conference where the global supply manager, Sarah Maryssael, reportedly expressed the company’s concerns over supply.
ioneer is currently working to bring its Rhyolite Ridge project in Nevada to fruition.
Completed in October 2018, the Rhyolite Ridge Pre-Feasibility Study confirmed the project’s strong potential to become a cost-competitive, major producer of lithium carbonate and boric acid.
The increased chatter over the need for US companies to secure new supplies of ‘critical’ minerals was also given a kickalong by a recent US government plan to secure an increasing share with a series of measures.
This content is produced by Star Investing in commercial partnership with ioneer. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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