What is the significance of Tesla engaging in lithium refining?

During the recent groundbreaking ceremony for the lithium refining facility in Texas, Elon Musk stated the following:

"When looking ahead a few years in the progress of electric vehicles, the basic bottleneck is the shortage of battery-grade lithium and lithium ore supply. As for lithium ore mining, it is actually quite common and is carried out all over the world. Lithium is present in all countries. So lithium itself is not in short supply, but the refining technology for battery-grade lithium in heavy industry is lacking. Battery-grade lithium is highly precise and must be extremely pure; impurities in lithium can cause battery degradation. Therefore, purity must be very high. We have some innovations that we believe are very effective in lithium refining, which has not been done before. This may be a good starting point for us to take over."

He is speaking like this.

Summing up Elon Musk's remarks, this is what it is.

1. There is a concern that the progress of electric vehicles may be hindered by a lithium shortage.

2. Lithium itself is available worldwide and cannot be said to be scarce.

3. Tesla will use its innovative technology to carry out high-quality lithium refining.

This is the significance of Elon Musk's commitment to lithium refining business.

Here is a map of the surrounding area where Tesla will construct the lithium refining facility.

Tesla has chosen Corpus Christi, Texas as the location for its lithium refining facility construction site.

Corpus Christi is a port city located in southern Texas.

As you can see on the map, it is close to Tesla's EV factory, Gigafactory Texas.

It is also not far from Gigafactory Mexico, which is planned to be constructed next year. In fact, it is located in the middle point between both Gigafactories, making it the ideal location to transport lithium to both factories.

At the groundbreaking ceremony for the lithium refining facility, Drew Baglino, Senior Vice President of Tesla's Powertrain and Energy Engineering department, stated the following:

"Corpus Christi has excellent talent in the field of oil and gas refining, making it a highly suitable location. It is close to Austin and has a very good deepwater port, providing a convenient route for transporting the raw material for this facility, spodumene, from all over North America. Additionally, it is directly connected by rail, allowing for transportation of rock and shipment of products by rail. It is truly a wonderful place with great community support."

In other words, it is clear that Corpus Christi is important to Tesla as a transportation hub for both maritime and land transportation.

In addition, Elon Musk...

"We want to emphasize that we are a very clean refinery. Like Toyota suggested, there are no harmful emissions or anything. People can live in the center of the refining facility without any negative impact. It operates in a very clean manner."

He states that the lithium refining facility will strive for environmentally sound operation.

Tesla aims to achieve an eco-cycle of EV battery materials through this Texas lithium refining facility.

Tesla emphasizes the localization of the lithium supply chain and the utilization of all feeds, including manufacturing scraps and end-of-life batteries.

Tesla plans to establish and operate its own lithium refining facility in Texas to achieve an eco-cycle of battery materials needed by North American electric vehicle factories.

This is Tesla's goal and vision.

Furthermore, Tesla aims to achieve a 30% process cut and strive for high-quality and affordable lithium supply by leveraging technology in its Texas lithium refining facility.

Once this facility is completed, Tesla will undoubtedly establish a solid position as an EV manufacturer and energy company, further expanding the gap with its competitors through vertical integration progress.

Let's continue to focus on Tesla's lithium refining business.