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The potential battery-grade lithium hydroxide refining facility will process, refine and manufacture battery materials, Tesla said in an application filed with the Texas Comptroller’s Office on August 22.
Chief Executive Officer Elon Musk has tweeted previously that Tesla might have to enter the mining and refining industry directly at scale as lithium prices surge.
If Tesla’s regulatory permit applications are approved, construction could begin in the fourth quarter of 2022 and will reach commercial production by the end of 2024.
Under the plan, Tesla will ship the final product from the refinery by truck and rail to various Tesla battery manufacturing sites supporting the supply chain for large-scale and electric vehicle batteries, the electric car maker said it its application.
Tesla is also evaluating a competing site in Louisiana for the project, it said.
Securing a steady supply of battery components is critical for Tesla as it faces mounting competition from rivals. The company also faces the challenge of significantly boosting production in the second half of the year, after China’s lockdowns hit production.
Tesla delivered 254,695 vehicles, 17.9% fewer electric vehicles in the second quarter from the previous quarter.
