These days, lithium batteries power electric cars.
However, it has been discovered after extensive research that Tesla plans to begin refining lithium in Texas.
What justifies the refinement of lithium, then?
We listed the top 10 reasons why Tesla wants to start refining lithium in Texas as an answer to the question.
Just take a look over them.
1. Tesla refinery plan in Texas
2. United State for refining Lithium
3. Lithium batteries can be reused
4. Lithium batteries can be recycled
5. Lithium Scramble
6. Lithium supply chain is concentrated
7. Refining is a license to print money
8. Elon Musk is serious for lithium ambition
9. Lithium refinery seeks tax relief
10. Lithium mining in the states
- Tesla’s Refinery Plans in Texas.
According to Tesla, it would be the first facility of its sort in North America to refine lithium hydroxide.
The refinery will transform “raw ore resources into a viable state for battery manufacture,” according to an application the company submitted to the Texas Comptroller’s Office. Source: Reuters
Since Tesla is up against stiff competition in the rapidly expanding market for electric vehicles, securing a consistent supply of battery components is considered essential.
According to Tesla’s Aug. 22 proposal, if granted, construction could start in the fourth quarter of 2022 and would reach commercial production by the end of 2024.
According to Reuters, under this arrangement, Tesla will transport the finished product from the refinery to the locations where Tesla batteries are made both by truck and train.
- United State for refining lithium.
“Price of lithium has gone to insane levels! If costs don’t decrease, Tesla may have to immediately enter the mining and refining industries on a large scale, the company’s founder tweeted this month.
The cost of lithium per tonne in the U.S. is displayed in the table.
| Year | Lithium Price($/tonne) |
|---|---|
| 2022 | $78,032 |
| 2021 | $17,000 |
| 2020 | $6,800 |
| 2019 | $11,310 |
| 2018 | $14,660 |
| 2017 | $12,070 |
| 2016 | $8,840 |
| 2015 | $5,110 |
| 2014 | $4,680 |
| 2013 | $4,750 |
| 2012 | $4,450 |
- Lithium batteries can be reused.
Reusing old batteries from electric vehicles is viable and is becoming more common. The lithium-ion battery is ready for a second life once its “automotive” life is over.
Its capabilities are still sufficient for a variety of uses, including stationary energy storage. Stationary energy battery storage serves as a buffer to handle variations in supply and demand of cleaner but less predictable energy sources, such as wind and solar.
Old batteries can also be repurposed for other things, such as powering houses, and streetlights when paired with solar panels. To install second-hand batteries in some homes, projects sponsored by Europe are figuring out options for two pilot cities (the Portuguese city of Évora and the Dutch city of Alkmaar).
The islands of Belle-Île-en-Mer and Porto Santo are being used as testing grounds by a worldwide automaker for extensive studies on battery storage for electric vehicles and local distribution of green electricity generated by regional renewable energy sources.
Reconditioned batteries are being installed in the pleasure craft at the Paris Yacht Marina as part of another initiative on the Seine in Paris.
- Lithium batteries can be recycled.
Since lithium is limited and cannot be recycled (yet), many other battery components, like as copper and nickel, can be recycled.
In electric car batteries, lithium makes up only 5-7% of the total weight; during recycling, this lithium is lost.
researchers in Sweden and Norway are already looking at ways to recycle lithium to address this issue.
Recycling lithium batteries is still not profitable, though.
The cost will decrease as more units of used batteries become available. Sadly, at this time, if a customer wants their used automobile battery recycled, they must pay.
Buying an electric automobile from some manufacturers, like Renault, will allow you to rent the battery rather than purchase it. When a battery reaches the end of its useful life, this is more economically advantageous for the corporation than having to purchase new materials.
- Lithium Scramble.
This year, the demand for lithium has increased dramatically as a result of the growing auto industry.
China continues to be the largest lithium processor in the world, even though competing projects in the US and the EU have encountered several obstacles.
In a time when automakers are scrambling to strike arrangements with miners and refiners, if Tesla’s plan moves forward, the automaker might become the first in the industry to invest directly in lithium refining.
Arpit Agarwal, director at venture capital firm Blume Ventures, which has supported EV startups like Euler Motors and Yulu, said that car manufacturers are attempting to ensure they have control over the supply of lithium to hedge against any geopolitical situation that might arise in the future and disrupt the supply.
He claimed that lower logistics costs as well as potential government subsidies might be advantageous for Tesla.
In the US, where stricter laws and limitations on who is eligible for tax credits are adopted, the drive toward EVs may speed, and battery producers, are also attempting to increase output.
With Australia’s Liontown Resources, Tesla struck a five-year supply agreement earlier this year.
The largest battery manufacturer in the world, CATL, has investments in lithium mines.
- Lithium mining in the United States.
Lithium is extracted from brine in the Silver Peak mine, whereas the two lithium mines that are being considered, Thatcher Pass and Rhyolite Ridge, would use open-pit mining methods.
Both mines would obtain lithium from less conventional sources: clay in Thatcher Pass and sedimentary rock in Rhyolite Ridge.
The two mines do, however, also pose debatable environmental difficulties that might prevent them from developing.
- Thatcher Pass
Sulfuric acid would be used to concentrate lithium from clay at the Thatcher Patch open-pit mine, which is owned by Lithium Nevada Corporation.
The mine would provide a substantial amount of battery-grade lithium (about 66,000 metric tons annually for 41 years), but it would also seriously harm the region.
A vulnerable species of trout as well as the sage grouse would be affected. Additionally, it would consume billions of gallons of water and likely contaminate nearby groundwater to amounts that violate federal requirements.
The permission of the mine has been contested by four conservation organizations because it would be illegal under the National Environmental Policy Act and the Federal Land Policy and Management Act.
- Rhyolite Ridge
The Rhyolite Ridge open-pit mine operated by Ioneer Ltd. would use sulphuric acid to extract lithium and boron from the sedimentary rock.
Rhyolite Ridge would be the lowest-cost lithium mine in the world because the boron would be simultaneously removed, reducing the cost of the element by over two-thirds
Ioneer expects to extract around 63.8 million metric tonnes of lithium over its anticipated 26-year lifespan, enough to power 400,000 electric vehicles.
The number of wildflowers has already been significantly damaged by recent degradation related to tiny animals.
The Endangered Species Act would be used to conserve the flower, the U.S. Fish and Wildlife Service stated in June 2021.
The government determined that the mine will decrease the wildflower’s population by 70 to 88 percent when combined with the current population loss.
Even though this listing might impede the mine’s development, the region might still be mined if it is determined to be economically relevant, so long as its development won’t lead to the extinction of the wildflower.
- The lithium supply chain is concentrated.
The U.S. Geological Survey estimates that the U.S. is rich in lithium reserves.
It “has less than a 10% global market share for manufacturing capacity across all major battery components and cell fabrication,” according to the Department of Energy (DOE).
Lithium extraction may not be the main focus of American efforts domestically.
The National Blueprint for Lithium Batteries 2021-2030, published by the DOE in June 2021, outlines a strategy for the United States to take the lead position in the lithium-ion battery supply chain.
- Refining is a license to print money.
The manufacturer of electric vehicles maintains that there is still insufficient capacity worldwide to convert raw materials into the components needed for lithium-ion batteries.
In two years, Elon can construct a battery factory. A lithium resource can take up to ten years to become operational.
Therefore, regardless of how much money is invested now, there is currently a structural shortage of lithium that will persist at least through the end of the decade.
To help with the lack of battery materials, Elon Musk has urged for increased investment in global lithium refining. He also guaranteed those who take advantage of the chance that it will be as profitable as “essentially minting money.”
“I’d like to once more encourage business owners to go into the lithium refining industry.
“You can’t lose, it’s a permit to print money.”
- Elon Musk is serious about lithium ambition.
His weakness has always been lithium, and he is now aware of the severity of the issue.
Elon Musk learns that the lithium industry doesn’t require Tesla.
Tesla needs lithium specialists because there are many other EV manufacturers at the moment.
- Lithium refinery seeks tax relief.
To safeguard the supply of the essential component used in batteries amid the rising demand for electric vehicles, Tesla (TSLA) Inc (TSLA) is thinking of establishing a lithium refinery on Texas’ gulf coast.
The proposed battery-grade lithium hydroxide refining facility, according to a proposal Tesla presented to the Texas Comptroller’s Office, would be the first of its kind in North America. It would transform “raw ore material into a viable state for battery manufacture.”
According to Tesla, the capacity to reduce local property taxes will also play a role in the choice to invest in Texas.
Elon Musk, the CEO, has previously stated that when lithium costs rise, Tesla may have to actively enter the mining and refining industries.
In comparison to the traditional technique, Tesla stated it will utilize fewer dangerous reagents and produce useful products, and its shares increased by 1.4% in premarket trade.
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Environmental impact of lithium and lithium refining.
Lithium batteries power electric cars, and doing so results in significant CO2 emissions during manufacturing.
Lithium batteries are priced at about 73 kg CO2-equivalent/kWh.
Emission of CO2.
The production of a single battery’s CO2 emissions is displayed in the table.
| Range of single battery production | Example | Emitting CO2 |
|---|---|---|
| 40kWh | Nissan Leaf | 2920 kg |
| 100kWh | Tesla | 7300 kg |
Components of Lithium-ion Battery.
Lithium-ion batter
The components of lithium-ion batteries are displayed in the table.
| Components of lithium-ion battery | Description |
|---|---|
| Cells | Contain active materials |
| Battery management system | Control system of battery |
| Pack | The structure of cells is mounted in it |
Carbon Emissions of an NCM11.
The type of energy required during the manufacturing process is one of the factors contributing to the high carbon footprint of lithium battery production. These days, batteries are produced in nations with less clean energy mix, like China, which gets 60% of its electricity from coal.
The carbon footprint of the batteries will be reduced if they are produced in nations that use more renewable and nuclear energy than average (several European countries are already investing in this).
Environmental Impact of Refineries.
Environmental harm may result from lithium mining, which is a pollutant source.
There is no reason to believe that extracting oil from the deep earth, refining it, and distributing it to gas stations all across the world will have a harsher impact (by boat and car).
Only 30% of the energy in gasoline is ultimately used by all of this.
When there are spills, pumping oil has a terrible impact. Unfortunately, millions of litter are dropped each year, endangering a variety of species.
The process of treating crude oil—more particularly, heating it to 350ºC—before it reaches gas stations results in significant emissions of greenhouse gases.
Refineries are the biggest producers of pollution in the cities where they operate since they heat about 100 million barrels of oil every day.
Only 1% of the oil utilized as an energy source worldwide is used to produce electricity; 99% of the oil is used for transportation and heating.
In the United States, transportation accounts for 68% of all petroleum use.
Therefore, by converting to refining lithium batteries, we would drastically reduce not only the total amount of CO2 emitted from vehicles on our roads, but also the amount of time that gasoline refineries are used, and as a result, their CO2 emissions.
Conclusion
To ramp up its China in the lithium market, the United States is trying to expand its rare earth mining and processing industries. The top 10 reasons Tesla wants to begin refining lithium in Texas were also revealed. About the environment, we also talked about how lithium and lithium refinement affect the environment.
And it’s fantastic for the future that Tesla decided to start refining lithium in Texas.
FAQs.
Texas Standard: Where is the majority of lithium refined today?
I believe it’s crucial to distinguish between refinement and resources. Argentina, Chile, and western Australia supply the majority of the world’s lithium. The majority of hard rock lithium is currently transformed into compounds in China.
Why Texas is better?
I would say proximity…Elon’s in Austin. Because he isn’t creating a lithium resource, it makes perfect sense to build it beside a port. He’s building a conversion plant. He will therefore need to bring in the feedstock.
And that’s where the real issue lies anyway. I mean, Elon shouldn’t be buying Twitter. It would be far more affordable for him to purchase a few lithium companies.
Does the location of where you refine lithium depend on the technology you choose?
Depending on the sort of battery he uses in his cars, there are two types of lithium resources and two types of chemicals you may create. Tesla makes use of both types. Elon will likely start by building a plant, in my opinion.
He will develop more from there as his needs evolve. However, he requires access to a resource that he does not now have, sufficient access to resources to entirely or even nearly totally meet his needs, even in Texas.
What is Tesla’s battery-grade lithium hydroxide refining facility?
The proposed battery-grade lithium hydroxide refining facility, according to a proposal Tesla presented to the Texas Comptroller’s Office, would be the first of its kind in North America. “Raw ore material would be transformed into a workable state for battery production.”
What does Tesla’s Texas lithium hydroxide plant mean for the industry?
According to Benchmark Mineral Intelligence Product Director Andrew Miller, Tesla’s Texas lithium hydroxide chemical factory will enable the electric vehicle manufacturer to carefully monitor the price and quality of the components that make up its batteries.
Where will the lithium hydroxide refinery be on the cyber truck?
According to reports, the lithium hydroxide refinery will be located in Texas and will supply the future Cybertruck Gigafactory.
According to a Benchmark Minerals article, the spodumene conversion facility will be constructed next to Gigafactory Texas, with a potential start-up date of Q4 2022.
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