Tesla Inc. (NASDAQ:TSLA) has initiated production at its lithium refinery in Robstown, Texas. The company announced on Monday that raw materials were successfully fed through the facility's kiln for the first time.
What Happened: The Corpus Christi-area plant represents the large-scale battery-grade lithium refinery in the United States and pioneers an acid-free refining process.
This development comes as global lithium prices have plummeted from their 2022 peak of $80,000 per ton to below $10,000, according to industry data.
"Increasing lithium refining capacity is critical to a sustainable energy economy," Tesla stated on X.
The timing of Tesla's refinery launch coincides with a projected lithium oversupply that UBS analysts expect to persist until 2027.
This week, we fed raw material through our kiln of our Lithium Refinery outside of Corpus Christi, TX for the very first time! Increasing lithium refining capacity is critical to a sustainable energy economy pic.twitter.com/TCumnzEEIB
— Tesla North America (@tesla_na) December 15, 2024
Why It Matters: Despite challenging market conditions, Tesla CEO Elon Musk has remained optimistic about battery production capabilities, recently noting that battery manufacturing is growing "almost at several times the rate of vehicle production."
The Texas facility's opening represents a strategic move in the U.S. battery supply chain, supported by the Inflation Reduction Act's push for domestic production.
This development occurs as Chinese companies maintain their market dominance despite current low prices, with some global producers operating at a loss, according to Martin Jackson, head of battery raw materials at CRU.
S&P Global forecasts lithium prices to stabilize between $9,900 and $11,600 per ton through 2026, suggesting a challenging but potentially stabilizing market environment as Tesla's new facility ramps up operations.
Price Action: Tesla stock closed Friday at $436.23, rising 4.34%. Year-to-date, the stock has soared 75.60%. The stock reached a 52-week high of $436.30, while its 52-week low sits at $138.80, with a price-to-earnings ratio of 119.61, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
"Increasing lithium refining capacity is critical to a sustainable energy economy," Tesla stated on X.
「リチウム精製能力の増加は、持続可能なエネルギー経済にとって重要である」とテスラはXで述べました。