Supply chain realities involving batteries have driven Tesla to consider building its own lithium hydroxide refining plant. The maker of electric vehicles has filed a notice with Texas saying that it's considering locations in Texas and Louisiana that have access to the Gulf Coast shipping channel.
|Lithium mine and refinery|
Increased demand for batteries to power electric vehicles has pushed the price of lithium, a major component, up 120% this year.
CEO Elon Musk had suggested back in April that Tesla might start refining lithium because the metal's cost had reached "insane levels."
The photo below reveals what has driven Tesla to this potential decision. Just look at how many lithium battery cells are used in a Tesla Model 3!
|Tesla Model 3 showing Tesla-made lithium battery cells|