Tesla (NASDAQ: TSLA) plans to launch its own lithium business.
The company plans to build a lithium refining facility on the gulf coast in Texas – nearby Tesla’s Giga Texas plant.
The plant will produce battery grade lithium hydroxide. Finished lithium would then be usable in batteries – and shipped to Tesla’s factories in California, Nevada and Texas.
Construction could begin as soon as late 2022 – according to an application with the Texas Comptroller’s Office.
It’s the latest development in Tesla’s Secret Master Plan 3.0
The price of lithium has soared 120% in 2022.
CEO Elon Musk has been complaining about lithium prices all year.
In April Elon Tweeted…
Musk has pointed out that there is ample lithium available in the world. However, producers have been slow to pull it out of the ground. Governments – particularly in the U.S. – have been unwilling to approve new projects.
Additionally, there has been little effort to build out lithium refining capacity in the U.S.
That poses a big problem for Tesla. And it’s why Elon is launching Tesla’s Master Plan 3.0 right now.
The recently passed Inflation Reduction Act provides a $7,500 tax credit for the purchase of a new EV. However, the EV must be made in America. And the majority of the battery – and battery metals – must also be from the U.S. or a friendly partner nation such as Canada or Australia.
By 2024 the U.S. government requires that 40% of an EV’s battery is extracted or processed domestically. That threshold rises to 80% by 2027.
Tesla realizes that it must begin sourcing more battery components and materials in the U.S.
Musk threatened Tesla’s suppliers to rise to the challenge. In July, he explained “if our suppliers don’t solve these problems, then we will.”
This news from Tesla confirms everything that I’ve shared related to Elon Musk’s Master Plan 3.0. Tesla is taking 100% control of its supply chains and taking dramatic steps to secure its dominance.
Tesla is rushing to secure access to limited battery metals. That’s because there’s a huge shortage of lithium, nickel, cobalt and graphite. And you simply can NOT make EV batteries without these metals.
Several tiny stocks are preparing to sign agreements with Tesla. And these stocks could see shares surge on the next major news announcement.
Yours in Wealth,