In an effort to gain greater control over crucial parts of its supply chain, Tesla (TSLA) revealed short-term plans to develop domestic lithium refining capacity at its investor day event on Wednesday.
As Thursday progressed, investors began unwinding the risky betas they had made in anticipation of Tesla’s investor day event, and the stock price of TSLA fell as a result. The price of lithium-based companies dropped as well.
The global EV behemoth announced on Wednesday that its Corpus Christi refinery, with a 50 GWh/y capacity, should begin processing raw lithium by the end of 2023.
On Wednesday, a Tesla executive named Andrew Baglino announced that the company had begun construction on its Texas facility, where it planned to spend $365 million for a lithium plant. In addition, Baglino mentioned that the facility is situated directly on train lines and is only 30 minutes away from the Corpus Christie ports. With a deadline of 12 months, Tesla plans to begin producing battery-grade lithium.
According to Baglino, Tesla is trying to speed up the industry by building a cathode plant and a lithium refinery.
Reuters claims that Tesla has also made an offer for the shares of Sigma Lithium (SGML), another company involved in the lithium industry. While Sigma Lithium has yet to generate any revenue, commercial manufacturing of lithium at its Brazil facility is scheduled to begin in April.
