CEO Elon Musk said the plant will protect against a future 'choke point' on battery-grade lithium availability.
“EV technology is really all lithium-dependent right now and probably for quite a while going forward,” said Melissa Barbanell, director of U.S.-International Engagement at the World Resources Institute and an expert on the clean energy economy. “So if we are reliant on other countries for that lithium then there is a possibility we will not be able to meet our goals.
to help address this gap in domestic battery manufacturing. The Inflation Reduction Act, signed into law last August, also adjusted the Clean Vehicle Tax Credit so that eligible vehicles must meet certain battery sourcing requirements, with materials largely coming from the U.S. or free-trade-agreement partners.
Tesla processing its own lithium will help ensure the company’s vehicles qualify for those credits and will protect it from supply chain fluctuations and geopolitical disruptions. While it is the only U.S. automaker with a plan to refine its own lithium so far,Advertisement Tesla claims its refining process is more environmentally friendly and will consume 20 percent less energy than conventional methods. It will also produce less-toxic byproducts that could be repurposed in construction materials, the company said. “We end up as a net environmentally very neutral site,” said Turner Caldwell, senior manager of battery minerals and metals at Tesla. The company estimates construction on the Texas plant will conclude in 2025.
Even with less impactful processing methods, sourcing lithium and the other critical minerals essential to the green transition remains controversial. Multinational lithium mining companies, including some of
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