Tesla now has a critical decision to make after China's groundbreaking 540,000,000-ton lithium discovery

Tesla is facing a critical decision after China’s 540,000,000-ton lithium discovery.

The motherlode was uncovered in the Jijiaoshan mining area in the Linwu County of the Hunan Province.

This has only solidified China’s dominance in the lithium field, coming second only to Chile in reserves of the mineral.

The recent news leaves Tesla with a choice to make on how it sources this precious resource.

EXPLORE SBX CARS – Supercar auctions starting soon powered by Supercar Blondie

The 540,000,000-ton lithium discovery in China

You might recall that China recently discovered 540,000,000-ton of lithium ore in the Hunan province.

Lithium is a vital component in the crafting of electric vehicles, as well as communications and energy storage.

But this recent discovery was a big deal for another reason.

This lithium ore find is composed of an altered, granite-type structure.

This structure, typically mined using hard-rock methods, offers a lot of advantages.

It allows faster crushing and processing, which means it has lower up-front cash costs.

The nature of the structure also allows for more flexible product outputs, meaning it can be exploited quicker and more efficiently under many different conditions.

This puts China in the driver’s seat when it comes to lithium batteries.

At this current stage, the country already has a close relationship with Tesla.

Around half of the 1.8 million Teslas produced every year come from the Chinese Gigafactory.

China’s increased dominance in the market means there’s a potential for a further reduction in the production costs of lithium batteries, which were already projected to fall 40 percent by Goldman Sachs.

This leaves Tesla with a dilemma – does it turn to China for lithium or keep sourcing from the USA?

With a fraught relationship with the current administration and tariffs being threatened against China, it’s not an easy decision to make.

The fast changing world of EVs

It’s no surprise that the lithium discovery is incredibly valuable, considering the astronomical rise in EVs in recent years.

In Norway, 97 percent of all cars sold are electric, which is an incredible figure.

While the equivalent figure was only 10 percent in the US, one study found more than 70 percent of US motorists are either ‘likely’ or ‘very likely’ to go for an EV for their next car.

It’s expected that one in four cars sold in 2025 will be electric – and this figure will be 40 percent by 2030.

That means a lot of lithium batteries will be needed in the years to come.

It remains to be seen which way Tesla will go when it comes to sourcing.

Click the star icon next to supercarblondie.com in Google Search to stay ahead of the curve on the latest and greatest supercars, hypercars, and ground-breaking technology.

DISCOVER SBX CARS: The global premium car auction platform powered by Supercar Blondie