Tesla may build a lithium recycling plant in Texas

Electric car manufacturer Tesla inc. (TSLA) is considering the possibility of creating a lithium processing plant on the Texas Gulf Coast to ensure the supply of a critical component of batteries against the backdrop of growing demand for electric cars.

A potential lithium hydroxide refining plant for batteries will process, purify and produce battery materials, Tesla said in a statement filed with the Texas Comptroller’s Office. Tesla is also evaluating a competing site in Louisiana for the project. The company’s CEO, Elon Musk, previously wrote on his Twitter account that Tesla might have to enter the mining and refining industry directly as lithium prices rise.

If Tesla’s applications for regulatory approvals are approved, construction could begin in the fourth quarter of 2022, and commercial production will be by the end of 2024. Ensuring a stable supply of battery components is crucial for Tesla as it faces increasing competition. The company also faces the task of significantly increasing production in the year’s second half.

Tesla shares at the auction on September 8 rose by 1.96% to $ 289.26 per paper, and on the postmarket, added another 0.22% to $ 289.9.