Tesla: Just brilliant – Elon Musk wants to further expand the value chain

Tesla: Just brilliant – Elon Musk wants to further expand the value chain


Tesla is exploring the possibility of a lithium hydroxide refinery on the Texas Gulf Coast. The facility would be the first of its kind in North America. Share can use positive impulses well.

While many old-guard automakers are still working hard to electrify their product range and implement their software plans, Tesla is taking the next step. Due to rising prices for lithium raw materials, company boss Elon Musk just wants to build a lithium refinery on the Texas Gulf Coast himself.

Not long ago, Elon Musk hinted that Tesla could move into lithium refining on a large scale.

The reason: Prices for lithium hydroxide, a key component in battery manufacturing, have already risen 120 percent this year, according to a report from Benchmark Mineral Intelligence.

If Tesla’s Texas application is approved, construction of the refinery could begin as early as the fourth quarter of 2022. The project is then scheduled to begin “commercial operations” in the fourth quarter of 2024.

The electric car maker would then process the “raw ore into a usable form for battery production” and then ship the lithium hydroxide to Tesla’s various battery factories.

By building a lithium hydroxide refinery, Tesla would expand the value chain. From a technical point of view, the short-term chart picture is very bright. The key 200-day line at $295.93 was broken. The next resistance stands at $315. If this barrier is also taken, the path to reach $370 is clear.