HomeInvesting NewsTesla Is Considering Building a Lithium Refinery in Texas

Tesla Is Considering Building a Lithium Refinery in Texas

Published on

Tesla (NASDAQ:TSLA)

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.

Lithium

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

Please See Disclaimer

Latest News

AT&T Stock is Going Up After a Few Bad Years

Nearing the end of a year-long change is AT&T stock. By eliminating its entertainment...

Which is Better: Bitcoin Stock or Ethereum Stock?

A cryptocurrency is a secure, virtual currency that is nearly impossible to counterfeit. Ethereum...

Nio (Nio Stock), BYD, and Other Chinese EV Manufacturers Expand Into Europe

Chinese buyers were won over by Nio (NYSE:NIO) and BYD (BYDDF) for their svelte,...

Facebook (META Stock) Claims To Have Removed A Chinese-Based Propaganda Effort Aimed Against The Midterm Elections In The United States

Before the November midterm elections, Meta Platforms Inc (NASDAQ:META) said on Tuesday that it...

More like this

QuantumScape Stock: Reasons for Today’s Spike

QuantumScape Stock (NYSE:QS) EV Battery company QuantumScape's stock price gained by 5% on Tuesday morning....

Roblox Stock (RBLX) Rises Despite Market Declines: Here’s What You Need to Know

Roblox stock (NYSE:RBLX) reached a price of $35.55 before calling it a day on...

Why Apple Stock Was Rising When the Market Opened This Morning

Apple Stock (NASDAQ:AAPL) Apple stock opened Tuesday's trading session up 2.6%, but the Apple stock...

Today’s 3% Rise in Coinbase Stock Is Just the Beginning.

Coinbase Stock (NASDAQ:COIN) Coinbase stock has risen by 3%, making it the best-performing cryptocurrency exchange...

Activision Stock (ATVI) Drops -0.83%: What You Should Know

The most recent trading session ended with Activision stock (NASDAQ:ATVI) reaching a price of...

TSLA Stock Is Expected to Break a Record With Q3 Deliveries

TSLA stock was trading at $279.06 as of 02:31 PM EDT. Tesla (NASDAQ:TSLA) is asking...