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Tesla considering building a lithium smelter in Texas, the first in North America, to start construction as early as the fourth quarter
Tesla is considering building a lithium smelter on the Texas Gulf Coast. Tesla told the state it was considering building a "battery-grade lithium hydroxide smelter" in Nueces County and It said it would be "the first of its kind in North America."
Tesla told the Texas state government that if the factory is built, "the raw materials will be processed into a state that can be used for battery production" and the resulting lithium hydroxide will be "packaged and shipped to Tesla by truck and rail. various battery manufacturing bases, providing the necessary supply chain for mass production of electric vehicle batteries.”
Tesla also said the process the plant will use is "innovative and designed to consume fewer hazardous reagents and produce usable by-products compared to traditional processes."
Construction on the project will begin as early as the fourth quarter of 2022, but commercial production will not be achieved until the fourth quarter of 2024. Tesla said the factory could be located "anywhere with access to Gulf Coast shipping lanes," but the company is also evaluating a competing site in Louisiana.
A massive lithium smelter would be the latest addition to Musk's growing Texas business empire. In addition to the new auto plant that opened in Austin this year, Musk has also built a large rocket prototype and launch facility in Boca Chica, Texas. His tunneling company, The Boring Company, is also working on several projects in the state.
Musk has spent much of the past year driving the rapid growth of North American lithium mines, contrasting the opportunity with the lucrative software industry.
"I want to urge entrepreneurs again to get into the lithium refining business. It's relatively easy to mine, it's much harder to refine. You can't lose, it's like owning," he said on Tesla's second-quarter earnings call in July. Money printing machine."
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