By 2025, 1,000,000 electric vehicles will be supported by Tesla's new Texas lithium refinery.

Tesla is the only carmaker in the United States that refines its own lithium, with enough battery-grade lithium to power one million electric vehicles by 2025. The Biden administration's electric vehicle tax credit is intended to encourage increased domestic battery material sourcing and manufacture.

“As we look ahead a few years, a fundamental choke point in the advancement of electric vehicles is the availability of battery-grade lithium,” said Musk, during the ground-breaking ceremony outside of Corpus Christi.

The CEO arrived at the event in a Cybertruck outfitted with a roof rack, which drew the attention of industry observers. Texas Governor Greg Abbott, Nueces County Judge Connie Scott, and U.S. Kathleen Hogan, Secretary of Energy, was present at the occasion.

Musk stated that the business plans to complete the refinery's construction next year, with full-scale production beginning in 2025. The schedule was defined as "extremely fast by normal standards" by the executive, which is correct, although it is slower than Tesla had initially predicted. Drew Baglino, senior vice president of powertrain and energy engineering at Tesla, stated during the company's Investor Day in March that the refinery will be operational by the end of the year and start production early next year.

Baglino also stated at the time that the refinery will have a capacity of 50 gigatonnes per year, which Musk did not confirm during Monday's event.

During Investor Day, Musk also urged other firms to get engaged in refining lithium, which he compared to "minting money."

“We’re doing it because we have to, not because we want to,” Musk said previously.

According to documents with the Texas Comptroller, Tesla will invest $375 million in the project. The refinery is Tesla's latest foray into Texas, which began when the firm relocated its headquarters from California to the state in 2021. Last year, the carmaker committed roughly $6 billion in its Austin gigafactory. Tesla said in January that it will invest a further $770 million to expand the factory to include cathode and drive unit production, as well as a battery cell testing facility.