autoevolution
 

Tesla Quietly Begins Construction of First U.S. Lithium Refinery in Texas

Tesla Construction Notice 7 photos
Photo: @fungineer43
Tesla Refining SiteTesla adLithium RefineryLithium RefineryTesal 4680 BatteryLithium Refinery
We have reported at length recently about how critical the nature of lithium supply is to electric vehicle manufacturing, where the average car requires up to 8 kgs (17.63 lbs.) of the soft yellow metal known as 'yellow gold' for its batteries.
In fact, back in September, we reported here on autoevolution about how Elon Musk and company were looking to go into the refining of lithium on U.S. soil in response to mandates in the recently passed Inflation Reduction Act (IRA). The mandates address the percentage of raw mineral content within an electric vehicle's battery required to qualify for federal tax incentives for EV buyers.

Now it appears that it is all-systems-go as signs along the roadside of a Corpus Christi, Texas, site have been erected, indicating a large construction project was underway. It appears the application Musk filed back in August seeking permission to construct a battery-grade lithium hydroxide facility with the state of Texas' Comptrollers Office has been approved.

Twitter sleuth @fungineer43/ based in Corpus Christi, visited the proposed site in mid-November of 2022 and saw no sign of construction but did note the land had been cleared of buildings and other debris and appeared to be graded.

In recent days, @fungineer43 returned to the site where Tesla was rumored to be building the first-ever of its kind lithium refining facility on U.S. soil and saw that the dirt road alongside the property had been covered in gravel and most significantly, a sign has now been posted announcing that Tesla will be constructing a lithium refinery on the site.

In November, Tesla begin recruiting for Area Superintendant and Area Construction Manager for the construction of the facility expected to produce materials for use in the production of Tesla's 4680 battery cells. The $375 million facility is expected to be operational by Q4 of 2024.

This may be the most significant news to come along in quite some time with regard to battery production for electric vehicles manufactured in the U.S. Given what has transpired over the last several years in automotive manufacturing, that is a mouthful.

First and foremost, it signifies that the industry can negotiate complicated U.S. Regulatory laws that pertain to the environment and come out on top. One can never count out Musk and company after the group did a major song and dance to be permitted to manufacture EVs in the People's Republic of China and received a plethora of tax breaks as icing on the cake.

Secondly, once it begins producing battery-grade lithium, prices will begin to stabilize (possibly drop), and a shorter supply chain for the vital metal will be established.

A lithium refinery in the U.S. must also be good news for the plethora of automotive and battery companies who have or plan to have battery production facilities on U.S. soil as it means they will possibly have a domestic source of lithium close to home.

If we know anything about Elon Musk, we could very well see him supplying other battery manufactures as another stream of income.



If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories