Tesla battery day, page-119

My take also Process1 - the 'clay play' is basically a call option on Li prices skyrocketing as they are predicted to do in a few years time.

Makes sense for Tesla BOD to want to mitigate supply risk and protect their most crucial input ingredient by guaranteeing availability of Li, without bidding in what should be by then a fiercely competitive market as other manufacturers ramp up. Apple bought aluminum deposits to guarantee their mac book deliveries. Same play here in my view.

As someone on twitter said, chemical engineering is hard to which someone rebutted, "no, space is hard" (sorry for no attribution). If anyone can pull together a team to mix table salt with clay then Elon can, but getting it done cost effectively and of sufficient grade is another ball game completely. Then at scale no less. Bench top proof-of-concepts do not scale well as Elon himself said in the presentation (1000x harder; the machines that make the machines).

What's to stop a battery company right now playing hardball with Elon in reverse, like wanna be a competitor with us? Guess what, your batteries have just gone up 10%.

I've read all that I can on Li since battery day and remain 100% convinced high grade spod like we have, uncommitted no less, is the place to be. The forecast demand for mobile and stationary domestic + grid is just staggering. My opinion only, yada yada.

Bring on the PFS!!