Refining, Tesla's Next Frontier

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I'm going to highlight 3 related points that I hope to add value to the already excellent analysis of Jordan Giesige. Lithium supply is the material Tesla is the most worried about over the medium to long term (4 to 10 years out)Refinement of Lithium is more likely to be problem than the mining of the raw material. Tesla is pressuring their suppliers and analyzing their operations (from a battery perspective)

World’s Shortest History Of Tesla

First, Tesla built the motors and battery packs and bought the car body from Lotus. Tesla just bought batteries made for laptops and engineered battery modules & packs to cool them and place them in cars.Tesla had a lot of trouble getting suppliers to take it seriously before about 2018 or so.

Finally, in 2014, on the unexpected success of the Model S, which won an incredible number of Car of the Year awards, especially significant for Tesla’s first ground-up vehicle design,to build as many batteries as all the others in the world combined . This was a very gutsy move 8 years ago, but had Tesla not taken that risk, it would be have been unable to grow as quickly as it has.

Even though battery manufacturers have expanded their output greatly, they still don’t seem to realize the size of the market or have the courage to take advantage of the opportunity. By 2020,. It bought a couple of startups in the battery technology space and announced it would start making 4680 batteries. It doesn’t want to replace the existing manufactures — it just wants to supplement everything it can get from others with its own production.

 

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