People are looking to take advantage of the recent shift aside from domestic combustion-powered cars and trucks by switching to electric vehicles. Elon Musk has been a strong supporter of the transition to electric vehicles, and the increase in Tesla shares ( TSLA- 3.43 %) over the past ten years is evidence of his popularity.
Musk reportedly said something straightforward but had a lot of meaning. In fact, the impact of what Musk said caused many stocks' shares to rise on Monday morning. Tesla stock definitely opened lower, but other benefits indicated that traders could benefit from the ongoing move toward EVs in a variety of ways.
Bill!
Musk's's rather innocent remark was merely a simple request to potential customers for Tesla. Following the most recent fiscal statement from the electric vehicle pioneer, he stated in the weekly conference call that Tesla was attempting to expand its lithium refineries in Corpus Christi and a cathode refinery outside of Austin. Musk, however, doesn't really want Tesla to focus on those regions. As he said," We're're pleading with you." We're're not interested in doing it. Could something kindly? Please begin working with lithium, miners, and processing instead of creating a picture-sharing app.
The main beneficiaries of Musk's's most recent remarks were stock of sodium assets. The largest gains on Monday morning were made by Sociedad Quimicay Minera de Chile( SQM 5.06 %), which increased by 6 % in the first half-hour of trading on the day. Additionally, Albemarle( ALB 5.20 %) made sizable gains, increasing by almost 5 %.
Shares in other sectors experienced marginally smaller changes, but they still performed well. Piedmont Lithium ( PLL 3.77 %) also managed to increase by almost 3 %, while Livent ( LTHM 3.97 %) increased by more than 7 %. Additionally, lithium Americas ( LAC 3.68 %) expanded.
numerous constraints
It goes without saying that there will need to be a lot more aircraft batteries available for the entire auto industry to proceed toward electrification. That may require a lot of sodium resources, based on current solutions.
However, it depends on who you ask where the supply chain's's possible classified will appear. According to Musk, natural lithium is fairly widespread. As a result, the Tesla CEO urged business owners to concentrate on increasing their strength for refining sodium so that his business and other EV manufacturers could use it to make chargers.
Others think that the secret to long-term EV achievement is mine capacity. Major automakers like Ford Motor ( F 1.68 %) and General Motors ( GM 1.33 %) are currently working hard to increase battery production so they can produce enough EVs to compete with Tesla and other early-movers in the market. Some lithium workers simply don't believe that the current state of development is sufficient to supply battery-grade materials to everyone who wants it right now, even if there were enough refinement services available to meet that demand.
How sodium workers can benefit
The way lithium mining companies react to the current market will have a significant impact on the sector's's hereafter. Albemarle, for example, has done a fantastic job of removing sodium from the ground, but it also wants to transform its own supply material into lithium that is suitable for use in batteries. Additionally, it is investing in research and development projects in an effort to find improvements in places like lithium battery technology.
Sodium will eventually become a commodity and been impacted by changes in supply and demand. However, there is more possible for those businesses that take full advantage of the original business than just offering a natural materials. It will be intriguing to see how Albemarle and people decide to pursue further invest in the area.
