{"id":31093,"date":"2022-09-09T05:55:10","date_gmt":"2022-09-09T09:55:10","guid":{"rendered":"http:\/\/autosector.com\/?p=31093"},"modified":"2022-09-09T05:55:10","modified_gmt":"2022-09-09T09:55:10","slug":"tesla-license-to-print-money-lithium-refining-factory-texas","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=31093","title":{"rendered":"Tesla plans a ‘license to print money’ aka lithium refining factory in Texas"},"content":{"rendered":"

Tesla is planning to build a lithium refining factory in Texas \u2013 something CEO Elon Musk has previously referred to as a \u201clicense to print money.\u201d<\/p>\n

In an application filed with the Texas Comptroller\u2019s Office and obtained by Reuters where Tesla is seeking to obtain relief on local property taxes, the automaker describes a battery-grade lithium hydroxide refining facility to be built \u00a0on the gulf coast of Texas:<\/p>\n

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\u201cThe potential battery-grade lithium hydroxide refining facility, which Tesla touted as the first of its kind in North America, will process \u201craw ore material into a usable state for battery production\u201d, the company said in an application filed with the Texas Comptroller\u2019s Office.\u201d<\/p>\n<\/blockquote>\n

If the project is approved, Tesla says that it could start construction as soon as in the fourth quarter of 2022, which would enable it to reach commercial production by the end of 2024.<\/p>\n

Tesla\u2019s Lithium Refining Effort<\/h2>\n

Tesla has been looking into entering the lithium mining and refining industry for a long time now.<\/p>\n

All the way back in 2014, Tesla tried and failed to buy a lithium startup for $325 million<\/a>.<\/p>\n

At Tesla\u2019s Battery Day event\u00a0in 2020, the automaker announced that it is\u00a0getting into the mining business\u00a0<\/a>\u2013 starting with buying lithium claims on 10,000 acres in Nevada.<\/p>\n

The automaker planned to implement a new process to mine and refine the lithium into a battery-grade material.<\/p>\n

However, two years later, Tesla has yet to do anything with this claim or\u00a0a new lithium mining technology announced at the same event<\/a>.<\/p>\n

In the meantime, the price of lithium has gone up by more than 400% during that time.<\/p>\n

More recently, CEO Elon Musk said that Tesla might actually get into the lithium business as a reaction to the price increase.<\/p>\n

During Tesla\u2019s last earning call, the CEO encouraged entrepreneurs to get into the lithium processing business \u2013 referring to it as \u201ca license to print money\u201d:<\/p>\n

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\u201cSo it is basically like minting money right now. There\u2019s like software margins in lithium processing right now. So I would really like to encourage, once again, entrepreneurs to enter the lithium refining business. You can\u2019t lose. It\u2019s a license to print money.\u201d<\/p>\n<\/blockquote>\n

There are many companies getting into this space or expanding it, including, Lithium Americas, Standard Lithium, Livent, and more. But as Musk pointed out, there\u2019s plenty of space for more.<\/p>\n

Tesla has recently issued a lot of contracts to secure a supply of lithium, but processing itself would be a big step for the company in furthering vertical integration.<\/p>\n

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