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Tesla lithium supply to come from Quebec, meeting IRA requirements for EV tax credits [Opinion]
Tesla will be receiving lithium supplies from Quebec, giving it an edge in meeting the Inflation Reduction Act’s battery requirements for EV tax credits.
A Major Source of Li in North America
In a press release, Tesla lithium supplier Piedmont Lithium Inc. announced the official restart of commercial spodumene concentrate production in North America. Spodumene concentrate is the most common lithium-containing rock, estimated to contain around 8% Li2O.
Piedmont and Sayona Mining Limited invested USD 80 million to restart the North American Lithium (NAL) project in Quebec, becoming the first major source of new spodumene production in North America. Piedmont predicts NAL will be the only major spodumene source in North America in the next two years. Sayona aims to produce 226,000 metric tons of spodumene concentrate annually and start commercial shipments by Q3 2023.
Tesla & LG Chem’s Li Deals with Piedmont
In the near term, Sayona is concentrating on fulfilling four shipments equal to 120,000 metric tons of spodumene from the NAL. Tesla and LG Chem are among the list of battery and electric vehicle manufacturers that will receive spodumene concentrate from NAL in Quebec.
Tesla and Piedmont have a multi-year deal for spodumene concentrate through the end of 2025. The deal states that Piedmont will deliver around 125,000 metric tons of spodumene to Tesla by the second half of this year.
South Korean battery maker LG Chem also has a deal with Piedmont for 50,000 metric tons of spodumene, starting Q3 2023. The Asian battery supplier expects to extract ~30,000 metric tons of lithium hydroxide from the spodumene supplied by Piedmont, enough material to support around 500,000 high-performance electric cars.
Tesla Ahead of the Curve
Last week, the U.S. Treasury Department released stricter battery requirements for EV tax credits under the Inflation Reduction Act (IRA). The IRA now requires 50% of battery components to be produced or assembled in North America in order for an electric vehicle to qualify for a $3,750 credit. In addition, at least 40% of the minerals used in an EV battery must come from the United States or a free trade partner to qualify for a $3,730 credit.
Lithium is a key ingredient of batteries in electric cars. Tesla and LG Chem are ahead of the curve when meeting IRA’s battery requirements, considering both companies will be receiving Li from the first major lithium source in North America.
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Tesla readies its autonomous Cybercab and Robotaxi cleaning service
A Texas permit just confirmed Tesla’s cleaning robot is coming to service its Cybercab and Robotaxi fleet.
A routine Texas building permit may have quietly confirmed that Tesla’s robot vacuum and autonomous cleaning bot for the Robotaxi and Cybercab is coming. A state filing with the Texas Department of Licensing and Regulation, as first discovered by Tesla enthusiast Spencer and posted to X, that project number TABS2025022006, lists the scope of work at Tesla’s Austin Robotaxi hub at 5900 E Ben White Blvd to include a “Cleaning Robot” alongside Supercharger cabinets and an Equipment Inspection System.
Tesla first showed the cleaning robot publicly on January 31, 2025, posting a short video on X with the caption “This robot sucks,” showing a large robotic arm inside a Cybercab cabin switching between attachments to vacuum debris, pick up trash, and wipe down surfaces.
The operational case for this hardware comes down to mathematics. A robotaxi running rides across Austin needs to cycle passengers continuously to generate revenue. Every minute a vehicle sits waiting for a human cleaning crew is a minute it is not earning. A robotic arm that can fully clean a Cybercab cabin between rides in under two minutes removes one of the key bottlenecks in fleet utilization that no autonomous vehicle company has yet solved at scale.
This robot sucks pic.twitter.com/VUmGfCM5B3
— Tesla (@Tesla) January 31, 2025
The 5900 E Ben White Blvd address sits roughly 12 miles southwest of Gigafactory Texas, where Tesla has been mass producing its Cybercab. The Ben White facility is expected to functions as Tesla’s Austin Robotaxi Hub, the physical base of operations where fleet vehicles return between rides to charge, get cleaned, and undergo inspection before being dispatched again – and all autonomously. One can imagine a Cybercab dropping off a passenger, routes itself back to Ben White, pulls into the cleaning station, charges on one of the Supercharger cabinets listed in the same permit, passes the equipment inspection system, and returns to service, all without a human making a single decision.
The sighting activity around both locations has accelerated in parallel with production. By mid-March 2026, Cybercabs were spotted regularly on public roads across Austin and Silicon Valley. Tesla’s Robotaxi operations in Texas has expanded to cover the entire Austin metro area and has spread to Dallas, while autonomous Cybercab employee shuttle runs at Gigafactory Texas are also set to begin soon. What it represents is the physical infrastructure behind a fleet that Tesla intends to run without anyone cleaning, driving, or dispatching it by hand.
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SpaceX reveals Starship Flight 13 launch date
SpaceX is preparing for the 13th integrated flight test of its Starship system, with a targeted launch as early as Thursday, July 16. The 90-minute launch window opens at 5:45 p.m. CT from Starbase in South Texas.
This comes roughly seven weeks after Flight 12 on May 22, underscoring the company’s accelerating pace in its rapid development campaign. The mission will use the latest Starship and Super Heavy V3 vehicles equipped with Raptor 3 engines. Booster 20 will attempt a controlled boostback burn, followed by a splashdown in the Gulf of Mexico, while Ship 40 will follow a suborbital trajectory.
Starship’s thirteenth flight test is preparing to launch as early as Thursday, July 16 → https://t.co/Rp7VwBzpWx pic.twitter.com/jdpFlQUEpF
— SpaceX (@SpaceX) July 11, 2026
Key objectives for Flight 13 will include demonstrating reliable stage separation, engine performance under various conditions, and controlled reentry.
A major milestone for Flight 13 is the first deployment of 20 next-generation Starlink V3 satellites. These satellites feature advanced laser links for inter-satellite communication, deployable solar arrays, and onboard cameras, six of which will capture imagery of Starship’s heat shield during flight.
Several heat shield tiles on Ship 40 will be painted white to serve as imaging targets, while additional experiments test upgraded tiles on aft flaps, modified attachments on the aft skirt, and load-sensing tiles to measure stresses. The upper stage will also attempt a single Raptor engine relight in space before a targeted splashdown in the Indian Ocean.
These tests build directly on lessons from Flight 12, which introduced the V3 configuration but encountered issues including a booster flip anomaly during boostback and an engine-out event on the ship. Hardware and software modifications on Booster 20 and Ship 40 aim to improve engine relight reliability, startup sequencing, and overall robustness.
Next Starship launch aiming for Thursday https://t.co/SajPPd4pdb
— Elon Musk (@elonmusk) July 12, 2026
The short interval between Flights 12 and 13 highlights SpaceX’s iterative approach. Elon Musk has repeatedly emphasized that Starship launches will become “incredibly common” in the coming years.
The company envisions scaling to rates as high as one launch per hour within 4-5 years, potentially enabling thousands of flights annually. Such cadence is essential for Starship’s goals: establishing orbital refueling for lunar and Mars missions, deploying massive satellite constellations, and making life multiplanetary.
With each flight, Starship edges closer to full reusability and operational maturity. Success on July 16 would mark another step toward routine access to space and the ambitious vision of humanity becoming a spacefaring civilization.
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Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.