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Elon Musk found it challenging to acquire Twitter, therefore he is now searching for alternative profitable investment ideas.

Being the richest guy in the world undoubtedly causes you to approach business and investing from a different perspective than regular people. However, what investment does Elon Musk now advise?

Elon Musk has expressed enthusiasm for what may be his newest commercial endeavour: the refining of lithium.

CEO Elon Musk even pushed his investors to wager on lithium refining during Tesla"s presentation of its quarterly results.

He defended his position by saying that buying lithium would be "a licence to print money," according to Bloomberg.

Elon Musk further guarantees that it is an investment that "cannot be lost" and that the transition to electric vehicles by more and more automakers makes it the ideal moment to make one.

"I want to exhort businesspeople to go into the lithium refining industry. Mining is not too difficult. It"s considerably more difficult to refine, "the businessman added. Elon Musk remarked, "Lithium refining requires a lot of technology and is tough to scale.

According to Elon Musk, the lithium processing industry will have "software-like" margins.

Why is there such a high possibility for profit? Elon Musk claims that the reason for the increase in lithium costs has nothing to do with a lack of raw materials and everything to do with the world"s constrained capacity to provide high-purity lithium carbonate and hydroxide to battery supply chains.

According to Benchmark Mineral Intelligence, the cost of lithium carbonate has really soared by around 450% in China over the past several months.

The fact that China presently owns more than half of the world"s capacity for lithium refining has further made the problem worse.
Tianqi Lithium Corp has had 46% of the world"s lithium production under its control since 2018.

Musk may be enthusiastic, but other investors are wary. After all, prices for lithium fell in the past due to an increase in investment, and they stayed low until 2020.

According to Bloomberg, numerous material suppliers have had issues, ranging from decreased output to sluggish deliveries.

Along with China, other nations including Australia, Chile, Argentina, and the United States already see lithium refining as a potential industry to capitalise on in the short- and medium-term.

Lithium is found in abundance in nature, however the refinement process is exceedingly difficult. However, since electric automobiles will rely largely on this resource, there may be some advantage to investing in this industry.