Tesla wants to produce his own lithium

Tesla wants to produce his own lithium

Tesla wants to set up a lithium refinery on the Gulf of Mexico in Texas, according to a request to Texan authorities seen by Reuters. Tesla wants to gain more control over access to this important raw material for batteries.

The lithium hydroxide refinery is touted by the US automaker as the first of its kind in North America. The refinery will “process mineral raw materials into a form that can be used for battery production,” the company said in a filing with the Texas Comptroller’s Office.

If approved, construction of the Tesla refinery could begin in the fourth quarter of 2022 and be ready for commercial production by the end of 2024, Tesla said in its Aug. 22 filing.

Tesla boss Elon Musk previously said Tesla should immediately enter the mining and refining industry on a larger scale as lithium prices rise, Reuters reported.

Car manufacturers become lithium producers

Mercedes signed an agreement with the Canadian government earlier this month to guarantee production. Volkswagen has also entered Canadian lithium production. Tesla itself signed a five-year supply deal with Australia’s Liontown Resources earlier this year, while rival EV makers Stellantis and Byd have invested in mines around the world.

China is the world’s largest producer of lithium.