Tesla's March to Lithium
Tesla's plans for bringing battery-grade lithium refining to North America seems to be getting closer to reality, as the EV company's negotiations with the Corpus Christi government in Texas have reportedly been moved into private sessions.
Earlier in September, Tesla filed an application with the Texas Comptroller's office where they described a lithium hydroxide refining facility, which would process "raw ore into a usable state for battery production".
Back then, Tesla said that if the project was approved, they could start construction as soon as the fourth quarter of 2022, and be ready to start production by 2024.
Well, negotiations can sometimes take a bit longer than that, but on November 16th, the Nueces County Commissioners unanimously voted to bring the negotiations into "executive session".
And given that they confirmed they were negotiating with Tesla about tax reductions, it certainly sounds like they're closing in on a deal.
To go with this news, we've gotten a bit more detail on what exactly this refining project would look like.
We know that the piece of land being considered is about 25 minutes outside Corpus Christi itself, near Robstown, Texas.
We also know that Tesla would be putting up $365 million for initial investment in the plant, and would employ 165 full-time workers, plus about 250 construction professionals for the two-year build.
Tesla also listed some improvements they intend on making to the facility. These are things like research and development, parking lots and roadways, utility improvements, a dedicated rail line, fire prevention equipment, and storm and wastewater treatment infrastructure. It certainly looks like it's going to be a huge project.
More than that, it's clear they're trying to invent a more sustainable process. They're planning a brand new type of factory, using new processes designed to use less hazardous materials, and produce more usable byproducts. Tesla doesn't do anything small apparently.
But also, Elon Musk has been pretty clear that he believes Lithium refining is a licence to print money. Getting a dedicated Tesla facility up and running by 2024 would be a huge benefit to Tesla, so it looks like they're sparing no expense.
Which makes sense. They've been gunning for an entry into the lithium industry for years now, going back as far as 2014 when they tried to purchase failed startup Simbol Materials. And back at the 2020 Battery Day, Tesla announced that it was getting into the mining business by purchasing 10,000 acres of lithium claims in Nevada.
Musk has been clear that the high - and rising - cost of Lithium was going to eventually force Tesla to do something - and it seems they finally have their opening.
Regardless, we'll just have to wait and see if these final hurdles get crossed quickly. It definitely seems like Tesla's got this in the bag.