Electric vehicle (EV) giant automaker Tesla is set to become North America’s largest processor of lithium with the construction of a new refinery in Texas, U.S.
The move aims to produce battery-grade lithium for 1 million electric vehicles by 2025 while also pioneering a new production technology to improve industry efficiency.
The groundbreaking ceremony was attended by Tesla CEO Elon Musk, who emphasized the importance of battery-grade lithium in advancing the electric vehicle industry. Musk announced plans to round up construction of the refinery next year, with full-scale slated for 2025, describing the timeline as extremely fast by normal standards.
Despite the new facility, Tesla still plans to purchase battery-grade lithium from other suppliers, as Musk believes that other companies should participate in the lucrative lithium refining industry.
Initially slated to commence in Q4 2022, Tesla plans to invest $365 million in the lithium plant, which will employ 165 full-time workers and create an additional 250 construction jobs for about two years.
According to filings with the Texas Comptroller’s office, Tesla has assured that the process it will use in the construction of the refinery would be innovative and designed to consume less hazardous reagents and create usable byproducts compared to the conventional process.
Investors King understands that having its source of battery-grade lithium would be a positive move for Tesla and its investors. Analysts disclosed that it would give the EV maker better control over its supply chain and lessen the probability that its business would be hurt by a global shortage of this critical battery material. Along with the availability benefit, it’s also possible that Tesla could reap a cost-benefit.
With the construction of the Texas refinery, Tesla is poised to become a leading player in the EV market by securing its supply of battery materials and furthering its commitment to sustainable energy.