Tesla (TSLA) Looking to Establish Lithium Refinery in Texas - Reuters

With the demand for electric vehicles on the rise, Tesla (NASDAQ: TSLA) is considering establishing a lithium refinery on Texas' gulf coast to ensure a steady supply of the essential component used in batteries, a report from Reuters claimed Friday.

In an application filed with the Texas Comptroller's Office, Tesla reportedly revealed that the facility will process "raw ore material into a usable state for battery production."

The decision to invest in the state will also be determined by the electric vehicle giant's ability to obtain relief on local property taxes.

As competition in the electric car market increases, it is viewed as critical for Tesla to secure a steady supply of battery materials.

Reuters stated that in the application, Tesla said if the facility is approved, construction could start in the fourth quarter, with commercial production beginning by the end of 2024.

Tesla shares are up more than 2% Friday.

By Sam Boughedda

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