Lithium Is Increasingly Used By Automakers Like Tesla Motors Inc (NASDAQ:TSLA), Volkswagen And Nissan
Tesla Motors Inc (NASDAQ:TSLA) seems to have shown the way on how to make electric cars with extended range by using rechargeable batteries built with lithium to power its vehicles. Today, many automakers developing electric engines are rapidly embracing lithium power. Besides Tesla, Volkswagen AG (ADR) (OTCMKTS:VLKAY) and Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) are other automakers using lithium to power their electric engines.
The adoption of lithium in the auto industry is solving serious problems but also raising interesting questions. One of the benefits of using lithium in rechargeable batteries to power engines is that it helps to reduce greenhouse gas emission. However, the rise in demand for lithium in the auto industry also raises questions about whether things would hit a dead end at some point.
Lithium is a material that very little was known about in the past. Many have even called it one of the mysterious elements of the world. However, the discovery that Lithium can be used to make rechargeable batteries is revolutionizing the world in major ways. Tesla Motors Inc (NASDAQ:TSLA) has been able to come up with fully electric cars that give longer ranges thanks to lithium.
To increase the use of lithium in power electric engines, Tesla Motors Inc (NASDAQ:TSLA) is working on lowering the cost of lithium-ion cells. The company has a lithium-ion cell production facility in Nevada called the Gigafactory.
Besides Tesla, NASA, Nissan and Volkswagen are also using rechargeable batteries built with lithium to power some of their machines. NASA’s Mars rovers use lithium-based batteries.
The major concern about lithium
With the growing need to cut emissions, the use of lithium in the auto industry is also expected to increase in the future. However, the question that many are asking is whether Tesla and its automotive peers will one day run into problems from their reliance on lithium power.
High demand for lithium could lead to a shortage in supply. However, lithium deposits on the Earth are still huge and there is no threat that Tesla Motors Inc (NASDAQ:TSLA), or others that use the element, will hit a dead end.
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