One of the world's largest manufacturers of electric vehicles, Tesla, is examining the viability of building a refinery for lithium hydroxide off the coast of Texas, according to a report by CNBC.
BEIJING, CHINA - OCTOBER 23: (CHINA OUT) Elon Musk, Chairman, CEO and Product Architect of Tesla Motors, addresses a press conference to declare that the Tesla Motors releases v7.0 System in China on a limited basis for its Model S, which will enable self-driving features such as Autosteer for a select group of beta testers on October 23, 2015 in Beijing, China. The v7.0 system includes Autosteer, a new Autopilot feature. While it's not absolutely self-driving and the driver still need to hold the steering wheel and be mindful of road conditions and surrounding traffic when using Autosteer. When set to the new Autosteer mode, graphics on the driver's display will show the path the Model S is following, post the current speed limit and indicate if a car is in front of the Tesla.
First of its Kind in North America
According to a recently published letter to the Texas Comptroller's Office, Tesla stated that the factory would concentrate on the creation of "battery-grade lithium hydroxide" and be "the first of its kind in North America."
The application stated that the company would process raw ore material into a viable state for battery production before sending the lithium hydroxide to multiple Tesla battery production facilities.
Elon Musk, the CEO of Tesla, stated in April that due to the metal's "insane levels," the company may need to enter the lithium refining business.
According to a tracking index from Benchmark Mineral Intelligence, the price of lithium has increased by 120% this year.
CNBC noted that the action by Tesla is probably an attempt by the company to diversify the sources of the lithium and batteries it uses. The United States only controls 1% of the world's processing and refining of lithium, while China controls more than half of it.
Read also: Tesla is Asking You to Vote on Supercharger Locations - Find out How!
Tesla's Sustainable Product Range
The business stated that it is also taking into account additional battery material processing, refining, and manufacturing as well as auxiliary manufacturing operations as part of the application to Texas to support Tesla's sustainable product range.
Construction may start in the fourth quarter of 2022 if Tesla's proposal is accepted, the company said. By the fourth quarter of 2024, the project will be "commercial operations."
According to Tesla, no contracts have been reached or signed for engineering, construction, or procurement, and no licenses have been received so far.
The company also said that Texas's law must grant tax benefits for this project to be financially feasible.
Lithium is a crucial metal for batteries that are used in everything from smartphones to electric cars. Given the strategic significance of such rare earth metals and China's supremacy in their mining, Washington has been concerned that Beijing could sever vital supplies of lithium and other elements, according to CNBC.
Related Article: Tesla Model 3, Model X, Model Y Holds 5-Star Euro NCAP Safety Rating Says Elon Musk, Others Earn Zero or Fail
This article is owned by Tech Times
Written by Joaquin Victor Tacla
