Record pre orders made for the new Tesla Model 3 as well as popularity of their Powerwall home solar panel batteries, pushed the tech/auto company to look for new partners that could supply them with the needed Lithium to keep production growing.
Lithium is the main ingredient in battery construction and is a material that needs to be sourced from compounds as it cannot be found in pure form in nature. Besides being flammable it is also highly reactive.
Demand for Lithium is expected to double by the end of this decade since an ever increasing trend of EV’s is building an interest with automakers who will be trying to get their share of the market.
Tesla is currently in partnership with Panasonic and the two have worked together since Tesla launched its first EV, the Roadster.
While the price of Lithium significantly increased last year, Tesla plans to reduce the cost of batteries using the mineral through mass production making them affordable in volume. We can recall a similar revolution and price drop happened with aluminum and carbon fiber, both materials being considered exotic at the time of invention. Early uses of aluminum and carbon fiber products were exorbitantly expensive, but mass production eventually landed them into the hands of regular consumers.