[Asia Economy New York=Special Correspondent Joselgina] Electric vehicle company Tesla is reportedly considering building a lithium refining plant for automotive batteries in Texas, USA.
On the 9th (local time), according to Bloomberg and AFP, Tesla stated in a tax reduction application submitted to the Texas state government that it is "conducting a feasibility study for the construction of a lithium hydroxide refining facility for batteries in Nueces County."
Tesla said, "This will be the first plant in the North American region," and if approved by the state government, construction could begin in the fourth quarter, with commercial operations expected by the fourth quarter of 2024. This plant will process raw materials into a state suitable for battery production and implement innovative processes that use fewer harmful reagents than existing methods.
This decision is interpreted as a response to the significant rise in lithium prices this year, increasing the need for an in-house lithium refining facility. Earlier, CEO Elon Musk said in April that lithium prices had reached a "crazy level," suggesting there might be a need to enter lithium refining. Lithium, a critical metallic component found in all batteries from smartphones to electric vehicles, has surged 120% in price just this year.
Local media also interpreted this as an attempt to diversify the supply of lithium and battery production, which China controls more than half of.
Meanwhile, on the New York Stock Exchange today, Tesla's stock price is trading at a level 3.51% higher than the previous session.
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