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Tesla’s new Texas lithium refinery to support 1M electric vehicles by 2025

Variety

09-05-2023 | 08:35

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Tesla’s new Texas lithium refinery to support 1M electric vehicles by 2025

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Tesla officially broke ground Monday on a Texas lithium refinery, making it the only US automaker to refine its own lithium.

CEO Elon Musk said the refinery will produce enough battery grade lithium for 1 million electric vehicles by 2025, which would make Tesla the largest processor of lithium in North America. Tesla will continue to rely on existing suppliers like Albermarle and Livent as it aims to reach its 2023 sales goal of around 1.8 million cars globally.

Lithium is the key critical material in lithium-ion batteries that power the electric vehicle revolution. Today, the US produces just 1 percent of the world’s lithium, with Australia, Chile and China leading the way. The Biden administration’s EV tax credit aims to spur more domestic battery material sourcing and production and reduce the US’s reliance on China, which hosts 60 percent of the world’s lithium refining capacity and nearly 80 percent of the world’s lithium-ion battery production capacity.

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