Tesla’s new Texas lithium refinery will support 1 million electric vehicles by 2025

Tesla broke floor on a lithium refinery in Texas on Monday, making it the one US automaker to refine its personal lithium.

CEO Elon Musk mentioned the refinery will produce sufficient battery-grade lithium for 1 million electrical autos by 2025, making Tesla the most important lithium processor in North America. Tesla will proceed to depend on current suppliers similar to Albermarle and Livent because it goals to satisfy its 2023 gross sales goal of roughly 1.8 million vehicles worldwide.

Lithium is the important thing important materials in lithium-ion batteries powering the electrical automobile revolution. At the moment, america produces just one% of the world’s lithium, with Australia, Chile and China main the way in which. The Biden administration’s EV tax credit score goals to encourage extra home sourcing and manufacturing of battery supplies and scale back the US reliance on host China. 60% of the world’s lithium treatment capacity And about 80% the world’s lithium-ion battery manufacturing capability.

“Trying ahead just a few years, the primary bottleneck in electrical automobile progress is the provision of battery-grade lithium,” Musk mentioned on the groundbreaking ceremony exterior Corpus Christi.

The CEO got here to the occasion with a Cybertruck. roof rack accessory attracted the eye of trade observers. Authorities officers similar to Texas Governor Greg Abbott, Nueces County Choose Connie Scott, and U.S. Deputy Assistant Secretary of Power Kathleen Hogan attended the occasion.

Musk mentioned the corporate goals to complete development of the refinery subsequent 12 months, and full-scale manufacturing is scheduled for 2025. The supervisor described the timeline as “extraordinarily quick by regular requirements.” That could be true, however slower than Tesla initially anticipated. Throughout Tesla’s Investor Day in March, Drew Baglino, senior vice chairman of powertrain and energy engineering, mentioned the corporate goals to have the refinery operational by the top of this 12 months and begin manufacturing early subsequent 12 months.

Baglino additionally mentioned the refinery could have a capability of fifty gigawatt-hours per 12 months, which Musk didn’t affirm at Monday’s occasion.

Throughout Investor Day, Musk inspired different startups to take part in lithium refining, which he likened to “printing cash.”

“We do it as a result of we’ve got to, not as a result of we wish to,” Musk beforehand mentioned.

Tesla will make investments $375 million for the development of the ability. chips With Texas Comptroller. The refinery is Tesla’s newest growth in Texas, which started in 2021 when it moved its headquarters from California to the state. The automaker invested almost $6 billion in its large manufacturing unit in Austin final 12 months. In January, Tesla mentioned it plans to speculate a further $770 million to increase the manufacturing unit to incorporate cathode and propulsion unit manufacturing and a battery cell check web site.