Part 8/12:
Tesla continues to benefit from falling lithium prices, which have dropped about 50%, significantly reducing the cost of batteries. The LFP (Lithium Iron Phosphate) batteries now constitute 60% of Mega Pack costs, and other automakers like Volkswagen are investing in mining operations to produce more affordable battery materials.
Volkswagen's plans to invest in mining and refine raw materials aim to meet half of its demand while also selling excess capacity to third-party manufacturers. Elon Musk points out that the bottleneck is not mining but refining, emphasizing the importance of process improvements over raw material availability.