Elon Musk pleads for more nickel extraction
With Tesla hitting a milestone in the second quarter by recording a fourth consecutive profitable quarter, the electric car maker is poised to turn a new page towards even faster growth. Amidst this potential, South Africa’s born billionaire and CEO of electric vehicle manufacturer Tesla, Elon Musk has called on nickel miners to produce more nickel, which should allow Tesla to solve its most notable challenge to date: battery cell supply.
During a presentation on the company’s second-quarter results, Elon Musk, publicly called for a ramp-up in global nickel production in line with the company’s future needs.
“Any mining companies out there please mine more nickel. Wherever you are in the world, please mine more nickel,” the billionaire begged.
The electric vehicle manufacturers expect much broader application of the nickel-cobalt-manganese (NCM) 8-1-1 battery with the maturing sector, which will result in increased volumes for nickel.
The battery market at present consumes only 3% of global nickel, but the vehicle manufacturers are expecting EV demand to hit double-digit penetration already in 2025. Amidst the company’s push for longer range and more power in its batteries, a steady supply of nickel would allow the company to push its innovations further.
Musk admitted the low LME nickel futures price as an impediment to nickel mining efforts, but urged miners not to be deterred on that basis.
“Don’t wait for nickel to go back to some high point you experienced five years ago,” Musk said of the price.
“Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way,” he added.
