Elon Musk And Tesla To Launch Texas Lithium Refinery

On Monday, Tesla Inc revealed that it has broke ground on the establishment of a lithium refinery in Texas. The electric car maker noted that the new refinery will have the capacity to produce about 1 million batteries for its electric vehicles by 2025. This will make it the largest processor of lithium batteries in North America.

Following the announcement, Tesla will now expand into the complex world of refining and processing lithium batteries. Chief Executive Officer of Tesla, Elon Musk, said the step was necessary if the company is serious about meeting its sales targets for electric vehicles (EVs).

The Facility Will Be Ready In 2024

Musk also provided a timeline for the completion of the project, as well as when the facility will start operating at full capacity. According to the co-founder, who doubles as Twitter’s Chief Executive Officer, the facility will be ready by next year. However, it will reach full production in 2025. This move will make Tesla the only major automaker with the capacity to refine its lithium in North America. The critical minerals industry, including the lithium refinery industry, is currently dominated by China.

Texas Governor Greg Abbott commented on the development. “Texas wants to be able to be self-reliant, not dependent upon any foreign hostile nation for what we need. We need lithium,” he said.

Tesla Will Keep Buying Lithium From Vendors Despite The New Facility

Although the refinery will help Tesla reduce its dependence on other lithium refinery plants for their raw materials, the company says it will continue to buy raw materials from its vendors, including Livent Corp and Albemarle Corp.

Albemarle is planning to set up a lithium processing facility in South Carolina, which will have the capacity to refine 100,000 tonnes of lithium each year. The company plans to start construction next year.

Musk didn’t say how Tesla will be getting its raw materials for the Texas refinery, but it still maintains supply deals with Piedmont Lithium Inc for spodumene, the primary raw material.

Tesla is planning to do away with the conventional lithium refining process in the industry. The process utilizes sulfuric acid and other strong chemical processes, which are harsh to the environment.

But Musk said Tesla’s manufacturing process will prevent any hazardous risks in the environment, as people can live in the refinery without having any ill effects.

This is not the first time Tesla has shown interest in the production of lithium. In 2020, Musk stated that the company secured rights on 10,000 acres to produce lithium in Nevada. At the time, Musk claimed Tesla will produce lithium from clay deposits, a process that has never been used to produce lithium at a commercial scale.