The EV industry’s lithium crisis

In the last quarter, Tesla posted a profit of USD 3.32 billion on- up 81% year-over-year. In the earning's call, Musk stressed the growing importance of Lithium in powering the EV supply chain. In fact, Tesla hired an exploration geologist in April to explore the possibilities of mining the metal in the face of soaring prices. Lithium prices have shot up 500%, from USD 17,000 per ton to almost USD 80,000 per ton in a year. McKinsey forecasted the demand of lithium carbonate equivalent to surge from 500,000 metric tons in 2021 to three million to four million metric tons in 2030.  The manufacturers of electric vehicles are moving closer to Lithium sources to shorten the supply chain. For instance, General Motors and MBW have already invested in a lithium extraction project in Cal