Tesla plans new lithium refinery

Recently, Tesla announced that it is considering building a lithium refinery in the US Gulf Coast region of Texas. The company wants to secure supplies of key raw materials needed to make its electric vehicle batteries amid a surge in global demand for electric vehicles. Tesla said the decision to invest in Texas will also be based on obtaining local property tax relief.

It is understood that Tesla said in its application to the Texas State Audit Office on August 22 that the potential battery-grade lithium hydroxide refinery will process, refine and manufacture battery raw materials. Tesla CEO Elon Musk has previously said publicly that as the price of the metal soars, Tesla may have to go straight into mining and lithium refining. U.S. media reports said that if Tesla's regulatory license application is approved, construction could begin in the fourth quarter of 2022, with commercial production likely by the end of 2024. Tesla said that under the plan, the final product will be transported from the refinery by truck and rail to multiple Tesla battery production sites that support the large-scale electric vehicle battery supply chain. In addition, Tesla says the facility will use an innovative process that will consume fewer hazardous chemicals than traditional processes and produce reusable by-products.

According to media reports, in addition to Texas, Tesla is also evaluating a competing site in Louisiana, USA. Ensuring a steady supply of its battery components is critical as Tesla faces challenges posed by increasingly powerful rivals. The company also faces the tough task of ramping up production significantly in the second half of the year after the supply chain and the coronavirus pandemic hit auto production.

At present, a total of 10 lithium processing projects are underway around the world. For example, Albemarle, the world's largest lithium producer, plans to build a new processing plant in the southeastern United States. Countries such as Germany and Australia have also seen an influx of new projects.