Tesla Eyes Lithium Refinery In Texas To Tap The Surging EV Demand

Tesla Inc TSLA explored setting up a lithium refinery on the gulf coast of Texas to secure its supply amid surging demand for electric vehicles, Reuters reports.
The potential battery-grade lithium hydroxide refining facility will process "raw ore material into a usable state for battery production," filings suggested.
Tesla's decision to invest in Texas will also depend on the ability to obtain relief on local property taxes.
CEO Elon Musk previously voiced the possibility of Tesla having to enter the mining and refining industry directly at scale as lithium prices surge.
Musk has also been vocal about the need for more players in the lithium refining industry.
On approval, construction could begin in the fourth quarter of 2022 and reach commercial production by the end of 2024, Reuters writes.
Tesla looks to 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 EV batteries.
Lithium prices have skyrocketed this year due to surging demand from the auto sector. China remains the world's largest lithium processor.
Battery makers are also looking to increase production in the U.S.
Tesla supplier Panasonic Holdings Corp PCRFY discussed building an additional $4 billion EV battery plant in the U.S., eying Oklahoma as the location for its new plant.
Price Action: TSLA shares traded higher by 1.35% at $293.17 in the premarket on the last check Friday.
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