Water Supply Contract 'Not Yet' in Drought-Stricken South Texas
Residents Struggle with Drought... Concerns Over Worsening Situation
Tesla, the world's largest electric vehicle company, is making every effort to secure water ahead of the operation of its lithium refining plant in Texas, USA. The plant requires a massive amount of water to operate, but since the region is already suffering from water shortages that affect local residents, conflicts over water are inevitable.
Bloomberg recently reported that "Elon Musk, CEO of Tesla, is seeking water for a large-scale Tesla lithium plant in drought-stricken Texas," noting that although preparations for operation began in December last year, no water-related contracts have been signed yet. Tesla is reportedly negotiating with a local water utility company.
Tesla has built the first large-scale lithium refining plant for electric vehicle batteries in the United States in Corpus Christi, Texas. The company invested $375 million (approximately 546.1 billion KRW) and received subsidies and tax incentives from authorities citing job creation and other reasons. Construction began in May 2023, and the plant was completed in December last year. Tesla plans to produce about 50 GWh worth of lithium hydroxide for batteries annually at this facility.
Initially, Tesla reported to relevant departments in 2022, before construction started, that it would need a minimum of 400,000 gallons (approximately 1,514,000 liters) and a maximum of 800,000 gallons of water per day. However, during discussions with consulting firms, Tesla revised its estimate to require 8 million gallons of water per day, submitting a new report to authorities indicating it needs ten times more water than originally projected.
Bloomberg explained, "The average American household uses about 300 gallons of water per day, or approximately 109,500 gallons annually, and in this area with about 3,800 households, daily water usage is around 1.1 million gallons." Based on this, Tesla's daily water usage would be eight times the total water consumption of local residents.
The problem is that southern Texas, where Tesla's plant is located, is a water-scarce region. According to reports, since early this month, drought conditions in the Corpus Christi area have worsened, prompting authorities to order the cessation of unnecessary water use in local facilities and parks. They have also restricted residents from washing cars or watering lawns and demanded reduced operating hours for fountains.
Local residents are concerned that Tesla's massive water consumption could further strain their daily lives. One resident said, "The water company has asked us to shorten shower times and make sure to turn off the faucet while brushing teeth," expressing worry that water use will become even more difficult if Tesla starts operating the plant.
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