Tesla has begun construction at its lithium processing facility near Corpus Christi, Texas 

On 8^th May, Tesla undertook a ground-breaking ceremony at its lithium refinery located outside of Corpus Christi, Texas. Construction of the plant is scheduled to be completed during 2024, with full-scale commissioning and ramp-up expected to take place during 2025. The lithium production capacity of the facility was not announced directly, though Tesla has stated that the plant will provide sufficient battery grade lithium compounds to manufacture 1 million electric vehicles by 2025. This suggests that the plant will be targeting annual production in the region of 35-40kt LCE, based on average lithium usage by BEVs during 2022, or roughly 30ktpy LCE if vehicles produced at the facility exclusively use LFP cathode material.  

Tesla is reported to be investing US$375M in the construction of the new facility, giving an estimated capacity capital requirement of between US$9.4-12.5M/kt LCE capacity. This is compared to a capacity capital requirement of US$30.6M/kt LCE capacity reported by Piedmont Lithium at their Tennessee refinery, or US$29.5M/kt LCE capacity at the first stage of Albemarle’s proposed US MegaFlex plant in South Carolina. It is unclear how Telsa has been able to reduce capital costs requirement significantly below other competing lithium refinery projects in the USA. Even if capital requirements increase beyond expectations at Corpus Christi, Tesla ensuring access to refined lithium compounds produced in the USA and the subsequent tax benefits under the US Inflation reduction act will be vital to ensuring long-term competitiveness in the US market.