Tesla Inc. (TSLA) is betting big on vertical integration with its newly unveiled lithium refinery in Texas, and according to Elon Musk, it's not just big—it's the biggest. The facility represents the automaker's latest push to control more of its supply chain and reduce dependence on overseas mineral processing.
A North American First
Tesla shared a video on X Wednesday showcasing the refinery, which the company describes as the first facility in North America capable of converting spodumene ore directly into lithium hydroxide. Spodumene, a naturally occurring mineral, serves as one of the primary sources for extracting lithium—the critical ingredient in EV batteries.
"Regionalized access to critical battery minerals brings jobs, cuts emissions & helps accelerate our mission," Tesla said in the post. The emphasis on localized production addresses both supply chain vulnerabilities and environmental concerns around shipping raw materials across continents.
Musk's Clean Production Claims
Elon Musk didn't hold back in praising the Texas operation. In posts on X Wednesday, he called it the "largest Lithium refinery in America" and separately claimed Tesla had "built the most advanced lithium refinery in the world," emphasizing that the facility is "very clean."
The clean production angle matters. Lithium extraction and processing have faced criticism for environmental impact, so if Tesla can demonstrate a cleaner approach at scale, it could shift industry standards while improving the company's sustainability credentials.