Tesla’s Lithium Refinery: North America’s Largest Battery-Grade Lithium Facility

With ongoing tariffs and continued tensions with China, Tesla’s efforts to onshore lithium precursor production—while cutting costs—will help solidify its position as the most American automaker.

Tesla’s lithium refinery near Corpus Christi, Texas, began limited operations in December 2024. It is the largest facility in North America producing battery-grade lithium hydroxide (LiOH) from spodumene ore. Using a process that avoids acids, sulfates, and harsh chemicals, the plant can produce enough lithium hydroxide to power about one million electric vehicle batteries each year—equal to 50,000 tonnes of lithium carbonate equivalent (LCE) or roughly 50 gigawatt-hours (GWh) of battery capacity.

This report explains the facility’s process, waste and water management, financial details, regulatory status and construction timeline. Unlike typical lithium refining, Tesla’s method creates safe byproducts—mostly sand and limestone—that can be used in construction. Major challenges include securing enough water and scaling up Tesla’s unique technology.

Spodumene: The Raw Material

Spodumene is a mineral with lithium, found in pegmatite, a type of rock that cools slowly underground and forms large crystals. It’s a key source of lithium from hard rocks and looks like long, glassy crystals.