Tesla bids to build lithium hydroxide plant

Tesla is exploring the option of building a battery-grade lithium hydroxide plant in Texas, the first such plant in North America. Lithium hydroxide is used in the manufacture of batteries for electric vehicles. This is reported CNBC.

An application for the construction of the plant was submitted by Tesla to the Texas Financial Inspectorate. As stated in the application, Tesla intends to process raw ore, and the resulting lithium hydroxide will then be supplied to Tesla’s car battery factories. In addition, the company intends to recycle “other battery materials” at the Texas plant and conduct “other manufacturing operations to support a sustainable manufacturing process at Tesla factories.” As indicated in the application, such a plant can be located on the coast of Texas to facilitate the transportation of products by sea. At the same time, the company emphasizes that the construction of this production facility will be profitable only if Tesla is granted tax benefits in accordance with state law. If the application is approved, the company is ready to start construction as early as the fourth quarter of this year and start production by the end of 2024.

The emergence of such a plant will allow Tesla to diversify its supply of lithium for the production of batteries. Currently, China controls more than half of all lithium refining and refining operations, while the US controls only 1%. Meanwhile, the cost of lithium has increased by 120% this year.

Alena Miklashevskaya