A fuel that Elon Musk took to ridiculing (literally) just got the mogul’s attention. After all, Tesla seems to be exploring new options beyond electric cars. Which ones can you think of that are more futuristic? We’ve gone over a few these past few weeks, but you won’t believe which one he’s chosen.
Tesla bets on new technology: this is what its new factory looks like to overtake China
Tesla is a leading electric vehicle manufacturer founded in 2003 by Elon Musk. The company produced its first car, the Tesla Roadster, in 2008 and has gone on to manufacture several popular models as Model S, Model 3, Model X, and Model Y.
Tesla’s goal has been to accelerate the world’s transition to sustainable energy. Electric vehicles are seen as essential to reducing greenhouse gas emissions from transportation. Tesla has played a pioneering role in making electric cars more appealing through features like instant torque, autonomous driving, and free over-the-air software updates.
The company has invested heavily in building out electric vehicle charging networks to enable long-distance travel. It has also focused on integrating sustainable energy into its supply chain. Tesla builds Gigafactories that produce electric vehicles, batteries, and solar products sustainably using renewable energy sources.
Now, Tesla is making another bold move to secure and control its battery supply chain by building its lithium refinery. This massive new refinery will have profound implications for the company and the broader electric vehicle industry.
Tesla’s lithium refinery, the project that has the U.S. on edge
Tesla is constructing a massive lithium refinery in Texas that will process raw ore material into battery-grade lithium hydroxide. The 10,000-acre site is located next to the Colorado River near McCommas Bluff, approximately 25 miles outside of Austin.
This lithium refinery will be the largest in North America once operational and can produce over 100,000 tons of lithium hydroxide per year. To put that into perspective, Tesla’s current lithium suppliers produced around 150,000-200,000 tons globally in 2021.
So this single refinery will have the capability to double the world’s supply of battery-grade lithium. The construction site is a hive of activity, with multiple buildings spanning millions of square feet.
Heavy machinery prepares the land and lays the foundation. It’s clear from the scale of this project that Tesla is thinking big and planning for massive growth in lithium-ion battery production.
Attention to what Tesla intends to do with its lithium refinery: Elon Musk is clear about it
Tesla’s lithium refinery will allow the company to better control its supply chain from start to finish. By mining raw lithium and refining it themselves, Tesla cuts out the need for third-party suppliers.
This vertical integration gives Tesla end-to-end control and helps ensure reliable access to a key component for electric vehicle batteries. Owning the entire production chain for refined lithium supports Tesla’s rapid growth plans for EV manufacturing.
As demand for electric cars continues rising globally, vertical integration buffers Tesla against potential lithium supply crunches. Controlling its supply chain also allows Tesla to innovate on refining processes and reduce costs over the long term.
Overall, Tesla’s lithium refinery exemplifies the company’s strategy of vertical integration. By owning more of the lithium production process, Tesla gains supply stability, cost advantages, and flexibility to meet their ambitious EV production targets.
The truth is that, after thinking about a lithium Tesla, we have little left to see from electrics. Elon Musk himself acknowledged that his company was going to explore projects that would seem unbelievable to the American consumer, accustomed to this brand as it is. Don’t you think that the next models could be even more futuristic?