Tesla CEO Elon Musk traveled to Texas on Monday to celebrate the groundbreaking of the company's new lithium refinery。

The new lithium refinery is expected to come into operation in a year and will supply about 1 million electric vehicles a year.

Musk said at the groundbreaking ceremony: "As you can see, we already have the relevant construction equipment.。So we're going to start building immediately。We aim to complete construction next year and are expected to be fully operational in about a year.。Musk added: "It's very fast by normal standards, but that's the way we do things."。"

Musk also claimed the facility would be one of the largest of its kind in the world, supplying about 1 million vehicles with battery-grade lithium each year, and expects its lithium refining capacity to exceed that of other refineries in North America combined.。

Battery-grade lithium supply is expected to become a bottleneck, and the plant is aimed at strengthening control of the supply chain.

Musk said: "We think it's important that the fundamental bottleneck in the development of electric vehicles in the coming years is the supply of battery-grade lithium," "and the lithium ore itself for mining is actually very common... So it's not a lack of available lithium ore, but a lack of really heavy industry refining lithium ore to battery grade.。"This new plant construction is the company's hope to solve the bottleneck problem in the supply chain.。

It is reported that Tesla this cost 3.$7.5 billion to build a lithium refinery, precisely in the hope of seeking more control over the supply chain through this refinery。Musk has previously said that the lithium refining business is actually equivalent to a "money printing license."。If the refinery is completed and put into operation as planned, it will expand the business beyond the core focus of automotive manufacturing - raw materials, which will help Tesla improve its supply chain.。

But Musk also said that Tesla will still use battery-grade lithium products produced by other suppliers, and Tesla will not take care of everything.。

Moving HQ to Build New Plant, Texas Wins Twice?

As early as 2021, Tesla will move its headquarters from California to Texas。In addition, Musk's space exploration company SpaceX and Tesla dedicated tunnel company The Boring Company and other related facilities are also in Texas。

The new lithium refinery will be located just outside Robstown, Texas, near Corpus Christi.。Regarding the location, Drew Baglino, Tesla's senior vice president of powertrain and energy engineering, said that the location of the lithium refinery is an ideal location because in addition to community support, there is a corresponding talent base in the oil and gas refining field.。

Baglino also claimed that the plant's transportation facilities are very convenient, saying: "The lithium refinery is close to Austin (Austin).。There is a very good deep water port。So we can bring in stock from all over North America through a convenient path to be the ore input to this refinery.。And the plant is also on the side of the railway。So we can get the lithium mine in and then get the product out by rail.。"

On the safety of the lithium refinery, Musk stressed that it is a very clean refinery with no toxic emissions, adding: "You can live in the middle of the refinery without any ill effects.。"

Texas Governor Greg Abbott, a Republican who also attended the ceremony, said: "The lithium refinery is fully in line with what Texas is trying to achieve in terms of economic development.。Not just good for jobs, but good for the entire future of the state。Abbott also added that he hopes to reduce dependence on lithium battery products from other countries through self-reliance.。

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