Tesla seems to be in final negotiations with Texas for their lithium refinery project, as reported by Electrek. It was in September when Tesla revealed plans to build a lithium refining facility on Texas' Gulf Coast.
(Photo : by Xiaolu Chu/Getty Images)
SHANGHAI,CHINA - MARCH 29: An aerial view of Tesla Shanghai Gigafactory on March 29, 2021 in Shanghai, China. Tesla Shanghai Gigafactory is reportedly producing vehicles at a rate of about 450,000 cars per year.
New Developments
A report by local news KIII TV stated that Nueces County Commissioners unanimously voted to move the negotiations between county leaders and Tesla to the executive. This means that the negotiations will be private. It was confirmed that they are working with the automaker on tax abatements for a property near Robstown, Texas.
More details state that Elon Musk's company would invest around $365 million in the lithium plant, employing around 165 people full-time. In addition, there will be 250 construction jobs for two years.
Tesla is also quick to state that their project will only have a minimal impact on the environment compared to another lithium refining. They will do this by processing raw ore material into a usable state for battery production. Furthermore, the company will implement an innovative process to ensure they will consume less hazardous reagents and create usable byproducts.
The company also cleared that the final product from the new plant will be battery-grade lithium hydroxide. It will be packaged and shipped by truck and rail to various Tesla battery manufacturing sites.
Also read: Tesla's Texas Lithium Refinery to be Constructed; Is It for the New 4680 Battery Cell Tech?
More Improvements Coming Soon
Tesla also added a list of improvements, such as supporting infrastructure and lithium refining equipment, operation buildings, a laboratory for R&D, and quality controls.
Why Texas?
Texas has a population of 27.8 million, and the state is home to a 4,000-mile border with Mexico. With the tight border and abundant resources, it is no surprise that the state is a prime location for manufacturing. It is also home to a skilled workforce and close to Tesla's other manufacturing sites.
Tesla has a lot of expectations to meet, and they are off to a great start. The new manufacturing facility in Texas should further the company's vision of a sustainable future. In addition, Tesla will be able to expand its operations to new areas while contributing to the current growth of Texas.
Tesla's Model 3 will first use battery pack modules made in their Nevada-based Gigafactory. It is expected that the supply of battery cells will be insufficient to meet the demand. This is why Tesla needs to start new projects to expand its battery production.
Will the Texas plant be able to produce enough battery cells for Tesla's needs? Only time will tell. In the meantime, Tesla is slowly revealing their plans for the plant, which is a good sign for all their investors. Elon Musk's company is growing at a quick pace, and it looks like their newest development will be a successful one.
Related article: Tesla May Start Constructing a Lithium Finery for EV Batteries in Texas Soon
Written by April Fowell
This article is owned by TechTimes
