The new sector in which you have to invest to make money according to Elon Musk

Elon Musk He is already the richest man in the world in 2022 and it seems that there is a new market opportunity that has caught his attention. If the success of him with Tesla was not enough, the businessman continues to look for new ways to grow his fortune. Last Wednesday he informed investors of a new sector, which according to Elon Musk, ‘is like printing money’.

The new sector that interests Elon Musk

It was at a results meeting that Elon Musk insisted that businessmen invest in the lithium refining sector, a sector with potential that still has a lot of ground to explore. “I would like to once again urge entrepreneurs to get into the lithium refining business. Mining is relatively easy, refining is much more complicated», Elon Musk stated during his speech at the meeting.

He seems to be clear that it is an investment for the future, in addition, he assured that this niche offers margins very similar to those of softwareso it considers that entering is like getting ‘a license to print money’. This is something that many investors are looking for, new ways to generate business and with it, fortune.

Supplementing his claims with a strong rationale, he wanted to point out international limitations in supplying high purity battery grade hydroxide and carbonate to battery strings. It is these same limitations that are hidden behind the restrictions on the possession of lithium, which has caused its price to continue to rise.

With the use of batteries in new systems, demand for lithium has increased in recent years and its price has also skyrocketed. In addition, it is expected that this market will continue to increase its demand, due to the use of lithium in batteries for electronic devices.

Currently, China is the largest lithium products in the world, controlling more than half of the current production of the sector. It is estimated that 46% falls to the Tianqi Lithium company, so it would be one of the giants of that industry that, according to Elon Musk, still has many possibilities to do business. However, he himself commented that lithium refining can be a complicated process, specific machinery is required and it is difficult to scale within the sector.

Refining as a key part of the process

For Elon Musk and his team at Tesla, the problem is not finding lithium, but rather have the right systems for refining and manufacturing at an interesting level to meet current market demand. Experts seem to be going the same way, agreeing that the difficult part is not finding lithium, but turning it into the material used for electronic devices. These batteries are increasingly present in more industries, smartphones or electric cars are two good examples.

The experts agree on the argument, but seem to want face the situation more cautiously and calmly than Elon Musk. It is in their best interest not to rush, keeping in mind that a large amount of investment could cause a drop in prices that would not be interesting for trading.

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The new sector in which you have to invest to make money according to Elon Musk