In May, Elon Musk said Tesla could be open to buying a mining company.
WATCH: Musk: Tesla Could Buy Mining Company
Now, CNN Business reports the automaker might build a battery-grade lithium hydroxide refinery on Texas’ gulf coast as lithium prices increase and EV demand grows.
The project would make Tesla the first in its industry to invest in lithium refining directly.
According to Tesla, the facility would process “raw ore material into a usable state for battery production.”
Tesla applied with the Texas Comptroller’s Office in August but is waiting to see if it can get relief on local property taxes.
Construction would start next quarter with plans to begin commercial production in two years.
Final products would ship via trucks and rail to Tesla battery manufacturing sites.
