We all know Tesla Inc (NASDAQ:TSLA) to be Elon Musk’s innovative electric vehicle company responsible for a large consumer shift away from gas guzzling automobiles. Although this is very true and represented by the company’s meteoric stock valuation (over $390 Billion) in the last couple of years, there is plenty more to the story.
In recent news, Tesla is bypassing the entire mining sector and are developing their own battery chemical supply chains. To facilitate this, the now “alternative energy” company is building a lithium hydroxide refinery plant in Texas. The chemical plant will convert spodumene ore into lithium hydroxide – a process key to Elon Musk’s battery cell production plan.
This news has been revealed parallel to Tesla signing a five-year deal to acquire spodumene from a mine in North Carolina. This deal will enable Tesla to make 8,000 tonnes of lithium hydroxide per year, starting between July 2022 and July 2023.
The new battery cell technology process will allow Teslas vehicles to use fewer batteries and will ultimately drive down manufacturing costs.
Investors are liking the bigger plan for the company as Tesla diversifies into clean energy plays.
Watch the full interview to understand why an investment in Tesla is more than just an investment into a profitable car company.