Tesla Is Considering Building a Lithium Refinery in Texas



Tesla (NASDAQ:TSLA) is aiming to build a lithium refinery on Texas’ gulf coast in an effort to ensure a consistent supply of battery components in the face of rising EV demand, as reported by Reuters

The electric vehicle manufacturer claimed in an application submitted to the Texas Comptroller’s Office that the potential battery-grade lithium hydroxide refinery will transform “raw ore material into a usable state for battery production,” adding that the choice to invest in Texas was motivated by the possibility of receiving local property tax relief.

In contrast to the usual procedure, the application, dated August 22, states that TSLA would employ fewer dangerous reagents and produce useable byproducts. If permitted, construction may start in 2022’s fourth quarter, and commercial production would probably start by the end of 2024.

According to the plan, TSLA will support the supply chain for large-scale and electric vehicle batteries by transporting the finished product from the refinery to various Tesla battery manufacturing facilities through trucks and rail.


This year, the demand for lithium has increased as a result of the rising automotive industry. If Tesla’s (TSLA) plan moves through, it might be the first company in the sector to make a direct investment in lithium. He said that Tesla might benefit from cheaper logistics costs as well as potential government incentives.

Battery manufacturers are also trying to boost output in the US, where a move toward EVs may accelerate if the nation adopts stronger regulations and restricts who is eligible for tax credits.

The Australian company Liontown Resources (LTR.AX) struck a five-year supply agreement with Tesla earlier this year, and rival EV manufacturers Stellantis (STLA.MI) and Byd have also made investments in global miners.

Shares of TSLA are up 1.42% before the market opens.

In August Tesla tripled deliveries of its China-built vehicles.

Featured Image-  Megapixl @Grigvovan

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