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Home » Tesla Lithium Refinery in Texas Ahead of Schedule, Will begin in early 2024

Tesla Lithium Refinery in Texas Ahead of Schedule, Will begin in early 2024

Tesla expects production at its Lithium refinery in Texas

Tesla expects to start production at its new lithium hydroxide refinery in Texas sooner than originally planned. According to Tesla Senior Manager of Operations Jason Bevan, commissioning of the facility’s assets will begin in early 2024.

Bevan stated that commissioning efforts will continue throughout the first half of the year, with the refinery ramping up production in the latter half of 2024.

The refinery, located in Hondo, Texas, will convert raw lithium into battery-grade lithium hydroxide. This material is a key component of the lithium-ion batteries used in Tesla’s electric vehicles.

Bringing lithium refining in-house should provide Tesla with a more cost-effective and reliable source of this critical battery material. The company plans to source lithium directly from its own operations and partners rather than relying on third-party suppliers.

Construction timelines for industrial plants tend to be short, with the lengthy process being scaling up production. For Tesla, local resources like water, power, and natural gas will need to be secured to enable high-volume lithium output.

By accelerating the start of lithium refining operations in Texas, Tesla aims to vertically integrate its battery supply chain faster. With its massive factory in Austin ramping Model Y production, reducing battery costs through internal lithium processing will be key.

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