Tesla is currently working on a lithium refinery project that would be coming to Corpus Christi, Texas, and it sounds like the automaker is in the final stretch of its negotiations with the authorities.

In September, we learned that Tesla has a plan to build a lithium refining facility on the Gulf Coast of Texas. At the time, all we knew was that Tesla was planning on moving fast with hope to start building in Q4 2022.

Tesla will process raw ore material into a usable state for battery production. The process Tesla will use is innovative and designed to consume less hazardous reagents and create usable by-products compared to the conventional process. Tesla made it clear that the final product from this new plant will be battery-grade lithium hydroxide and shipped by truck and rail to Tesla battery manufacturing sites, supporting the necessary supply chain for large-scale and electric vehicle batteries

Source: Electrek: Read The Article

PSR Analysis:  This is another positive step towards a circular supply chain for Lithium and a way for Tesla to secure a supply of battery grade lithium by vertically integrating this process. This move is significant for Tesla, but it is also significant for the industry because where EVs are concerned, Tesla often leads the way. PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research