Tesla is known for making electric vehicles. However, the company is going deeper into the supply chain supporting its manufacturing. It is evaluating setting up a lithium refinery in Texas, as reported by Bloomberg.
Snow Lake Lithium’s electric mine may power up to 5 million EVs in North America.
Lithium is vital in EV manufacturing as it is a crucial ingredient for EV batteries. However, Tesla wants to come in at the lithium refining stage, as it has informed the authorities in Texas.
It is not surprising the direction Tesla is going with lithium. CEO Elon Musk has dubbed the business a “license to print money.” He also urged investors to consider the business.
Tesla is considering a facility in Nueces County. The EV maker plans to ship the refined lithium by truck and rail to its manufacturing sites.
Tesla claims its refining process is “innovative and designed to consume less hazardous reagents and create usable by-products compared to the conventional process.”
Construction may start as early as the last quarter of 2022. It will come online toward the end of 2024. However, Tesla can’t have enough lithium; it will begin receiving lithium from Core Lithium this year.
Another company in the EV supply chain interested in lithium is CATL. It has won the rights to a lithium project in China.
Meanwhile, Tesla is also considering a site in Louisiana.