Elon Musk had beforehand recommended Tesla might get into lithium refining at scale as a result of the price of the metallic, a key element in manufacturing batteries, has surged. If Tesla’s software in Texas is authorized, building on a lithium hydroxide refining facility might start within the fourth quarter of 2022.
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Electrical automotive big Tesla is evaluating the feasibility of a lithium hydroxide refining facility on the gulf coast of Texas.
Tesla stated the plant could be targeted on the event of “battery-grade lithium hydroxide” and be “the primary of its type in North America,” in response to a newly launched letter to the Texas Comptroller’s Workplace.
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The corporate would course of “uncooked ore materials right into a usable state for battery manufacturing” then ship the lithium hydroxide to varied Tesla battery manufacturing factories, the appliance stated.
In April, Tesla CEO Elon Musk stated the corporate might have to get into lithium refining as a result of the price of the metallic had “gone to insane ranges.”
The value of lithium is up 120% this yr, in response to an monitoring index from Benchmark Mineral Intelligence.
Tesla’s transfer can be doubtless a bid to diversify the availability of its lithium and battery manufacturing. China controls greater than half of the world’s lithium processing and refining, and the US simply 1%.
As a part of the appliance to Texas, the corporate stated it is usually contemplating “different battery supplies processing, refining and manufacturing and ancillary manufacturing operations in assist of Tesla’s sustainable product line.”
If Tesla’s software is authorized, building might start within the fourth quarter of 2022, the corporate stated. The undertaking will attain “business operations” by the fourth quarter of 2024.
Tesla stated that it’s nonetheless “evaluating the feasibility of this undertaking” and “solely very preliminary improvement actions have begun.”
No engineering, building or procurement building contracts have been negotiated or signed and no regulatory permits have been obtained, Tesla stated.
Musk’s agency stated the undertaking may very well be situated “anyplace with entry to the Gulf Coast delivery channel.” Tesla stated it’s evaluating a competing web site in Louisiana.
Tesla stated the one approach this undertaking might be viable is that if Texas provides it tax breaks underneath its legislation.
“Within the case of the funding on this proposed undertaking in Texas, the choice might be primarily based on plenty of business and monetary concerns, together with the power to acquire reduction relating to native property taxes,” in response to the appliance.
Lithium is a vital metallic for batteries that go into every thing from electrical automobiles from smartphones. Given the strategic significance of such uncommon earth metals and China’s mining dominance of them, there was concern from Washington that Beijing might lower off vital provides of lithium and different supplies.
The U.S. is seeking to ramp up its personal uncommon earth refining and mining trade to meet up with China.
Here is the letter: