Texas Governor Greg Abbott celebrated Tesla’s new lithium refining facility and the economic boost it will have for South Texas at a special ceremony in Robstown.

The $375m Tesla lithium refinery in Texas will produce battery-grade lithium.

Tesla CEO Elon Musk and Governor Abbot spoke at a groundbreaking ceremony for the upcoming facility just outside Corpus Christi, Texas.

The facility will be built southwest of Robstown, but it will still be situated within the Robstown Independent School District (ISD). 

Tesla has said that the refinery will start operations at the end of 2023 and will have a capacity of 50 GWh per year.

“Facilities like this lithium refinery are core components to our state strategy for the state of Texas to be more self-reliant,” Abbott said.

Abbott also highlighted the critical need for lithium amid growing tensions with China, the primary source of the material. He expressed concerns that any disruption in lithium supply from China could have a significant impact on the state’s economy and daily operations.

“That’s why part of our strategy is for the state of Texas to be involved in producing more lithium, refining more lithium so that we will be the source point of the lithium that we need and that our businesses need to keep Texas flourishing,” he said.