{"id":1121500,"date":"2019-06-17T19:32:50","date_gmt":"2019-06-17T19:32:50","guid":{"rendered":"https:\/\/www.mining.com\/?p=993736"},"modified":"2019-06-17T19:32:50","modified_gmt":"2019-06-17T19:32:50","slug":"elon-musk-says-tesla-might-get-into-mining","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1121500","title":{"rendered":"Elon Musk says Tesla \u201cmight get into mining\u201d"},"content":{"rendered":"

One of the biggest applause lines of Elon Musk\u2019s presentation to shareholders at Tesla\u2019s annual meeting was the teasing of a new product \u2013 the cyberpunktruck (I assume it\u2019s a working title).<\/p>\n

Musk said the company spent a lot of time on the design; that it\u2019s the coolest car he\u2019s ever seen and that it will look like something from a sci-fi movie. Musk promised a reveal this summer; \u201chopefully\u201d (silence from the crowd this time).<\/p>\n

That\u2019s exactly the kind of talk you expect from Musk. But the usually cocksure CEO actually brought up a potential roadblock to the launch of the cyberpunktruck (I\u2019m beginning to warm to the name):<\/p>\n

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\u201cThere is not much point in adding product complexity if we don\u2019t have enough batteries. Then it\u2019s complexity without gain. <\/p>\n<\/blockquote>\n

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“We are matching the product roll out according to the scaling of battery production. That’s really the main limiting factor. <\/p>\n<\/blockquote>\n

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“As we scale battery production to very high levels, we actually have to look further down the supply chain. We might get into the mining business. Maybe. A little bit, at least.<\/strong><\/p>\n<\/blockquote>\n

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“We will do whatever we have to do in order to ensure we scale at the fastest rate possible.”<\/strong><\/p>\n<\/blockquote>\n

Musk chuckled (or was it another case of the giggles<\/a>) when he mentioned mining, but at least one of his ventures have built up some expertise in digging holes and tunnels \u2013 the Boring Company.<\/p>\n

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Tesla deployed more battery power than its next four biggest rivals combined <\/p>\n<\/figure>\n

And by the time the cyberpunktruck (rolling off my tongue now) enters full-scale production, asteroid mining by Space X could already be a reality (Tesla is not unfamiliar with production delays is what I\u2019m saying).<\/p>\n

If anyone making EVs realizes that battery production is the biggest obstacle to scale it would be Musk. Based on global EV battery deployment data<\/a> Tesla is not just shaming US and European competitors, but also the hundreds of EV manufacturers registered in China.<\/p>\n

In March this year, Tesla deployed more battery power than its next four biggest rivals combined. That includes no.2 BYD (Build Your Dream) backed by Warren Buffett as long ago as 2008.<\/p>\n

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In order to feed the Tesla battery beast, Musk announced a battery and powertrain investor day.<\/p>\n

\u201cHopefully this summer; at least before the end of the year for sure,\u201d Musk said and perhaps to make up for the tentativeness of that statement added: \u201cThis is a big deal.\u201d But of course he says that about everything Tesla:<\/p>\n

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\u201cIf I was an outside investor I would really focus on two things: What is the timeline to full self-driving. What is your plan to scale battery production and get the cost per kilowatt hour down. <\/p>\n<\/blockquote>\n

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\u201cIt\u2019s basically battery power and full self-driving. That\u2019s the two strategic things that are most important.\u201d<\/p>\n<\/blockquote>\n

The progress on $\/kWh is outpacing that of autonomous driving. In 2014 each kWh produced by a lithium-ion battery cost $290. This year it fell below $100 for the first time.<\/p>\n

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The battery represents at least a third of the cost of an electric car and raw materials are responsible for the bulk of the cost of the battery<\/p>\n<\/blockquote>\n<\/figure>\n

The battery represents at least a third of the cost of an electric car and raw materials are responsible for the bulk of the cost of the battery.<\/p>\n

Falling prices aren\u2019t good news for cobalt, lithium, nickel and graphite producers. But with electric vehicles only making up a tiny fraction of the global car parque, what miners lose in price they\u2019ll certainly make up in volume.<\/p>\n

The recording of the annual shareholder meeting below will start at around the 58-minute mark where Musk introduces the cyberpunktruck (where do I pay my deposit?) and talks about mining:<\/p>\n

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