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Tesla is building a lithium hydroxide refinery in Texas for its Cybertruck factory
A recent report from market intelligence publisher Benchmark Mineral Intelligence has revealed that Tesla is poised to build a lithium hydroxide chemical plant in Texas. The lithium hydroxide refinery will reportedly be situated in Texas, and it will be used to feed the upcoming Cybertruck Gigafactory.
The spodumene conversion facility will be built adjacent to Gigafactory Texas, and based on Benchmark Minerals’ report, the facility has a target date of Q4 2022 for its start of operations. This is a notably aggressive timeframe for such a facility, though it is something distinctly Tesla. Ultimately, the lithium hydroxide refinery will add to Tesla’s plans to set up a cathode facility in Texas, which Elon Musk has described as part of the electric car maker’s cell production plan.
The upcoming conversion/refining plant will turn hard rock spodumene ore into lithium hydroxide, which is used directly in battery cells. It should be noted that prior to Tesla’s battery efforts, this process has traditionally been performed in China using spodumene that’s sourced from Australia. In its report, Benchmark Minerals noted that Tesla will be using a hydrometallurgical process to turn its spodumene ore into lithium hydroxide, effectively eliminating the use of sulphuric acid. This process, however, remains untested in the commercial scale.
Interestingly enough, a recent announcement from Australian mining firm Piedmont Lithium has revealed that Tesla has signed a five-year deal to acquire spodumene from a mine in North Carolina. In its press release, Piedmont noted that its Tesla deal represents about one-third of the expected 160,000 tonnes per annum that’s expected to be produced at its North Carolina mine. This deal will likely supply Tesla with 8,000 tonnes of lithium hydroxide a year, starting between July 2022 and July 2023.
In its report, Benchmark stated that the Piedmont Lithium deal will likely account for just over half of Tesla’s battery needs for Gigafactory Texas in 2023, the first estimated full production year of the electric car maker’s 4680 cells. With this in mind, Tesla would still need to secure more spodumene supply beyond Piedmont Lithium’s capabilities, especially if the company intends to fully ramp its battery cell production capabilities. Benchmark Mineral Intelligence Managing Director Simon Moores, for his part, highlighted the significance of Tesla’s battery production push.
“Lithium’s foundations for the 21st century are beginning to shift in what is a China-dominated part of the lithium-ion battery and electric vehicle supply chain. Tesla is the first automotive OEM to enter lithium production – a watershed moment. And it does so without having to mine lithium from the ground. Not only will it allow Tesla to control costs at this supply chain step, it will once again see the spodumene trade flows point towards the USA instead of China, a market that has dominated spodumene conversion for a generation through majors such as Tianqi and Ganfeng Lithium.
“It will also significantly bolster its negotiating power on its future lithium hydroxide contracts once it harnesses the ability to produce a consistent battery ready lithium hydroxide and scales capacity. Tesla has clearly come to the realization that it cannot rely on the upstream of the supply chain or investors to expand quickly enough for its needs. It has now taken some of that responsibility away from the miners and chemical producers and once Tesla gets to grips with the lithium refining process, scale will be introduced and we expect that post-2022 ramp to be rapid,” he said.
Benchmark Mineral Intelligence Product Director Andrew Miller added that Tesla’s lithium hydroxide chemical plant in Texas will allow the electric car maker to closely monitor the cost and quality of its batteries’ components. Miller added that Tesla’s efforts to move upstream in the battery supply chain will likely be replicated by other carmakers in the future.
“With Tesla entering the upstream of the lithium-ion battery supply chain at the conversion stage the company does not have to become a lithium miner, a skill-set and company culture that is entirely different to creating chemically refined materials. Controlling the lithium conversion from the raw material – spodumene concentrate – means they can not only reduce the cost but also control the quality of the lithium hydroxide output more closely.
“This is additional evidence that lithium will remain a specialty chemical that is tied to and tailored for the needs of the end-users, rather than a commodity. In addition, Tesla’s efforts to move upstream will likely be replicated by other auto manufacturers, and in other areas of the supply chain. Having control of advanced material costs into the EV supply chain is an increasingly important factor in lowering battery prices,” he said.
Benchmark Mineral Intelligence’s report on Tesla’s lithium hydroxide refinery could be accessed here.
In a notable intersection of Big Tech powerhouses, Meta, led by Mark Zuckerberg, has partnered with Canadian energy infrastructure giant Enbridge on a significant renewable energy initiative that will rely on battery technology from Elon Musk’s Tesla.
The project, which was announced this week, marks another step in Meta’s aggressive push to power its expanding data center operations with clean energy, dispelling many of the complaints people have about them.
This new development is located near Cheyenne, Wyoming, and will feature a 365-megawatt (MW) solar farm paired with a 200 MW/1,600 megawatt-hour (MWh) battery energy storage system, also known as BESS. Tesla is providing the batteries for the project, valued at roughly $200 million.
The story was originally reported by Utility Dive.
This Wyoming project represents the first phase of Enbridge and Meta’s joint “Cowboy Project.” Once operational, it will deliver power to Meta’s regional data centers through Cheyenne Light, Fuel, and Power under Wyoming’s Large Power Contract Service tariff.
This tariff, originally developed in collaboration with Microsoft and Black Hills Energy, is designed specifically for large loads like data centers. It ensures that the renewable supply serves hyperscale customers without impacting retail electricity rates for other users.
The battery system will operate under a long-term tolling agreement, providing dispatchable capacity that enhances grid reliability. During periods of high demand, the utility can access the backup generation, addressing one of the key challenges of integrating large-scale renewables with the explosive growth of data center electricity demand driven by artificial intelligence.
This latest collaboration builds on prior joint efforts between Enbridge and Meta in Texas, including the 600 MW Clear Fork Solar, 152 MW Easter Wind, and 300 MW Cone Wind projects. Together with the Wyoming initiative, the companies have now partnered on roughly 1.6 gigawatts (GW) of combined solar, wind, and storage capacity.
The deal highlights the intensifying demand for reliable, low-carbon power from technology giants. Meta has committed to supporting its data center growth with renewable energy, joining peers like Microsoft and Google in seeking large-scale solutions. Enbridge’s Allen Capps described the project as “one of the larger utility-scale battery installations supporting U.S. data center operations and growth.”
The involvement of Tesla’s battery technology adds an intriguing layer, linking two of the world’s most prominent tech leaders—Zuckerberg and Musk—in the clean energy transition.
As data centers continue to drive unprecedented electricity load growth across the United States, projects like this one illustrate how hyperscalers are turning to strategic partnerships with traditional energy players and innovative storage solutions to meet both sustainability goals and reliability needs.
SpaceX has decided to stand down from what was supposed to be the first test launch of Starship’s v3 rocket tonight after a minor issue with a hydraulic pin delayed the flight once more.
The company scrubbed its first test flight of the upgraded Starship v3 on May 21 in the final minutes of the countdown. SpaceX CEO Elon Musk quickly took to social media platform X, explaining that a hydraulic pin on the launch tower’s “chopsticks” arm failed to retract properly.
Musk added that the company would fix the issue this evening. SpaceX will attempt another launch tomorrow night at 5:30 p.m. CT, 6:30 p.m. ET, and 3:30 p.m. PT.
The hydraulic pin holding the tower arm in place did not retract.
If that can be fixed tonight, there will be another launch attempt tomorrow at 5:30 CT. https://t.co/DJAdvDYQpH
— Elon Musk (@elonmusk) May 21, 2026
The countdown for Starship Flight 12 — featuring the taller and more capable V3 stack with Booster 19 and Ship 39 — had been progressing smoothly until the late-stage issue surfaced. The Mechazilla tower arm, designed to secure the vehicle on the pad and eventually catch returning boosters, could not complete its retraction sequence.
SpaceX teams immediately began troubleshooting the hydraulic system for an overnight repair.
Starship V3 introduces several significant upgrades over earlier versions. These include greater propellant capacity, more powerful Raptor 3 engines, larger grid fins, enhanced heat shielding, and an improved fuel transfer system.
We covered the changes that were announced just days ago by SpaceX:
SpaceX unveils sweeping Starship V3 upgrades ahead of May 19 launch
The changes are intended to increase payload performance, support higher flight rates, and advance the vehicle toward operational missions, including Starlink deployments, NASA Artemis lunar landings, and future crewed Mars flights. The debut flight from Starbase’s new Launch Pad 2 marked an important milestone in scaling up the fully reusable Starship system.
This stand-down highlights the intricate challenges of preparing the world’s most powerful rocket for flight. Despite extensive pre-launch checks, a single component in the ground support equipment can force a scrub.
The incident aligns with Starship’s proven iterative development approach. Previous test flights have encountered both successes and setbacks, each providing critical data that refines hardware and procedures. Some outlets may call some of these flights “failures,” when in reality, they are all opportunities for SpaceX to learn for the next attempt.
With V3, SpaceX aims to reduce ground-system dependencies and increase launch cadence to meet ambitious long-term goals.
The Tesla Model Y became the first-ever car to reach a legendary Norwegian milestone, surpassing 100,000 new registrations after gaining a reputation as one of the most popular vehicles in the country and the world.
As of May 20, Norwegian authorities have registered 100,224 units of the electric SUV, according to data from local outlet Opplysningsrådet for veitrafikken (OFV).
By population, roughly one in every 29 passenger cars on Norwegian roads is now a Model Y, underscoring its rapid rise as a national favorite.
Since the first deliveries in August 2021, the Model Y has transformed from a newcomer to a staple in Norwegian traffic.
Tesla back on top as Norway’s EV market surges to 98% share in February
Geir Inge Stokke, the Managing Director of OFV, described the achievement as “remarkable,” noting that few single models have gained such traction so quickly. “Tesla Model Y has hit the Norwegian market spot on, and the numbers illustrate how fast the EV market has developed here,” Stokke said.
The Model Y’s success reflects Norway’s aggressive push toward electrification. Nearly nine out of ten units, 87.6 percent, to be exact, are privately registered, with the remaining 12.4 percent on company plates. Owners span the country, from major cities to smaller municipalities, proving it is no longer just an urban or niche vehicle but a true “people’s car.
Who is Buying Tesla Model Ys in Norway?
Typical Model Y drivers are men in their early 40s. The average registered user age is 44, with 83 percent male and 17 percent female. Stokke noted that household usage often extends beyond the primary registrant, broadening the vehicle’s real-world appeal.
Geographically, adoption concentrates in urban centers with strong charging infrastructure. Oslo leads with 16,861 registrations (16.82 percent of the national total), followed by Bergen (7,450), Bærum (4,313), and Trondheim (4,240).
The top five municipalities—Oslo, Bergen, Bærum, Trondheim, and Asker—account for 35,463 units, or about 35 percent of all Model Ys. Yet the vehicle’s presence outside big cities highlights its broad acceptance.
Growth Trajectory and Popularity
Tesla built a lot of sales momentum in a short amount of time. In 2021, registrations closed out at 8,267, but more than doubled to more than 17,000 units in 2022 and more than 23,000 units in 2023. 2025 was the company’s strongest year yet, as Tesla managed to record 27,621 registrations.
Through 2026, Tesla already has 7,036 registrations.
Tesla’s Global Success with the Model Y
Tesla has tasted so much success with the Model Y; it has been the best-selling car in the world three times, it has dominated EV sales in numerous countries, and contributed to a mass adoption of electric vehicles across the planet.
As Stokke emphasized, the Model Y’s journey from newcomer to icon mirrors Norway’s broader success story. With robust incentives that push sales, excellent infrastructure, and consumer eagerness to transition to sustainable powertrains, the country continues setting global benchmarks in sustainable mobility.
The Tesla Model Y stands as a shining example of how quickly change can happen when conditions align.
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