"The Tesla CEO argued that too many companies are underestimating their exposure to geopolitical risks posed by fragile supply chains, particularly for critical materials used in electric vehicles and energy storage. "There are so many companies out there that are asleep at the switch with regard to geopolitical risk - or they just have their head in the sand and hope nothing bad will happen," Musk said. "I'm way more paranoid than that.""
"He added that his concern has pushed Tesla to take unusual - and expensive - steps to protect its future, including building its own lithium-refining and battery-production facilities in Texas. In December 2024, the company began processing lithium from its $1 billion Robstown, Texas, refinery. This month, Tesla announced it is producing dry-electrode 4680 cells with both anode and cathode made in Austin, which will end up in "certain Model Ys.""
American companies face exposure to geopolitical risks from fragile global battery supply chains, especially for critical materials used in electric vehicles and energy storage. Tesla built lithium-refining and battery-production facilities in Texas to reduce disruption risk, including a $1 billion Robstown refinery that began processing lithium in December 2024 and local production of dry-electrode 4680 cells with Austin-made anode and cathode destined for certain Model Ys. Many companies remain underprepared for supply-chain shocks. Interest in building similar domestic facilities has renewed, but construction progress has slowed, creating urgency for broader investment in U.S. battery infrastructure.
Read at Business Insider
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