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Tesla lithium supply to come from Quebec, meeting IRA requirements for EV tax credits [Opinion]

Credit: Piedmont Lithium

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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. 

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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. 

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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NASA taps SpaceX for more astronaut missions as Boeing Starliner remains grounded

NASA just gave SpaceX a $946 million contract for three more astronaut missions through 2030.

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NASA has awarded SpaceX a $946 million contract modification covering three more astronaut missions to the International Space Station, according to an announcement the agency published Friday. The award adds Crew-15, Crew-16, and Crew-17 to SpaceX’s existing Commercial Crew Transportation Capability contract, bringing the agreement’s total value to $5.92 billion across 17 flights.

SpaceX confirmed the award on X, writing that it was excited for Falcon 9 and Dragon to launch NASA’s Crew-15, 16, and 17 missions to the Space Station from Florida. The new missions cover ground, launch, in orbit, and return operations, along with cargo transport and a lifeboat capability while docked at the station, and the period of performance runs through 2030.

The award follows a notice of intent NASA issued in May, when the agency first signaled it would purchase up to six additional post certification missions from SpaceX. Teslarati covered that filing at the time, noting NASA cited technical issues and schedule delays encountered by Boeing as a driving factor. Friday’s contract modification locks in three of those six missions, with the remaining three left open for NASA to award later, potentially to Boeing if Starliner clears certification.

Boeing’s CST-100 Starliner has still not flown an operational crew rotation mission for NASA. The spacecraft’s most recent crewed test flight in 2024 ended without the astronauts returning aboard Starliner, and the company has spent the time since working through thruster problems. SpaceX President Gwynne Shotwell said this week that SpaceX is not retiring Crew Dragon today, for sure, while stopping short of committing to fly it past 2030.

Crew-12 is currently docked at the space station, and NASA has said Crew-13 is targeting a launch in the coming weeks. The newly awarded Crew-15 through Crew-17 missions extend SpaceX’s role as NASA’s primary way of getting astronauts to and from orbit well into the back half of the decade, regardless of what happens with Starliner or Starship in the meantime.

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Investor's Corner

New drone video shows Tesla’s Optimus Factory reaching a turning point

New drone footage shows Tesla’s dedicated Optimus factory steel frame nearing completion at Giga Texas.

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Tesla’s dedicated Optimus factory at Gigafactory Texas is closing in on a finished steel frame, according to drone footage posted Thursday afternoon by longtime site observer Joe Tegtmeyer. In the video, Tegtmeyer said structural steel assembly is now about five column grids away from reaching the building’s north perimeter beam, putting the primary skeleton in its final stretch roughly six months after Tesla broke ground on the North Campus site in late March.

Tegtmeyer’s footage shows concrete already going in on three upper floors while crews continue laying rebar and pouring grade beam footings at ground level. That kind of parallel work, steel rising at one end of the site while concrete sets at the other, is a scheduling approach Tesla used at the original Giga Texas building and appears to be repeating here to save time before the plant’s targeted 2027 production start.

Teslarati has tracked the building’s progress since Tesla confirmed construction was officially underway in May, when the first steel structure went up on what was then bare, reclaimed land. The facility is part of a more than 5.2 million square foot expansion of Giga Texas’s North Campus that Tesla has said will eventually run nearly the length of the existing vehicle factory, over 4,000 feet, while sitting somewhat narrower. Musk has pegged the long term output target at 10 million Optimus units a year once the line is running at full capacity, a volume that would dwarf the one million unit pilot line Tesla is standing up separately at its Fremont, California factory.

Tesla Giga Texas to feature massive Optimus V4 production line

The Texas facility sits alongside another major buildout on the same campus. Terafab, the joint Tesla and SpaceX chip fabrication plant that will eventually supply the silicon running Optimus units in the field. Housing robot assembly and chip production on the same grounds is a deliberate supply chain decision, cutting down on the shipping and lead time that would otherwise sit between the two.

Tesla has not given an updated timeline beyond its previously stated goal of bringing high volume Optimus production online at the site in the summer of 2027. Fremont’s smaller pilot line began mass producing the current Gen 3 robot in January, with that plant expected to build tens of thousands of units this year primarily to generate the real world data Tesla needs to refine the robot’s software before Giga Texas ramps up. Six months of visible construction progress, tracked almost entirely through Tegtmeyer’s recurring drone flights, gives the clearest outside look yet at how seriously Tesla is treating that 2027 deadline.

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Investor's Corner

Tesla and SpaceX take “Terafab” Trademark fight to Federal Court

Tesla and SpaceX sue a small Illinois firm after cease and desist letters over Terafab.

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SpaceX Terafab rendering

Tesla and SpaceX are asking a federal judge to rule that their planned Terafab chip factory does not infringe a small Illinois company’s trademark, a request that arrives only after months of quiet negotiation broke down this summer.

The dispute traces to May 18, when Tesla filed three U.S. trademark applications for “Terafab” and “Tesla Terafab,” covering semiconductor chips and related chip making services. TERA-print LLC, a nanotechnology company that has held a federal trademark for “Tera-Fab” since 2021, responded five days later with a cease and desist letter. According to the lawsuit, first reported by Reuters, TERA-print argued that Tesla and SpaceX’s use of “Terafab” would confuse consumers familiar with its own trademark, which covers a desktop photolithography printer sold to researchers for sensor and bioengineering work.

What stands out in the filing is the timing of TERA-print’s own paperwork. One day before sending that cease and desist letter, on May 22, TERA-print applied to expand its existing registration to cover semiconductor materials, silicon chips, nanoelectronic devices and AI design services, categories it had not previously claimed. Tesla and SpaceX call that filing opportunistic in their complaint, noting it arrived two months after Tesla’s public Terafab announcement and just days after Tesla’s own trademark applications went in.

Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry

By June 10, TERA-print was threatening to sue for federal trademark infringement, false designation of origin and unfair competition, the complaint states. Rather than wait to be sued, Tesla, SpaceX and SpaceXAI met with TERA-print six separate times between June and August trying to resolve the dispute directly. Those talks collapsed, and the companies filed for declaratory judgment this week in the U.S. District Court for the Western District of Texas, asking a judge to find that “Terafab” does not infringe TERA-print’s mark before TERA-print can file a claim of its own.

TERA-print isn’t backing down. The company told PCMag it discussed a settlement with Tesla as recently as September 2 and feels misled by what it called Tesla’s professed interest in settling. Its CTO, Andrey Ivankin, said TERA-print holds a Defense Department contract to fabricate semiconductors and partially owns Mattiq Inc., an AI company built on TERA-print’s products, and that the company will vigorously defend its rights.

Tesla and SpaceX argue the overlap is superficial. Terafab is planned as a $16.8 billion complex spanning roughly 100 million square feet at the Grimes County site SpaceX confirmed last month, built to produce chips for Optimus robots, Tesla’s AI computing needs and SpaceX’s orbital data center ambitions, a scale and purpose the companies say no reasonable consumer would confuse with a tabletop lab printer. TERA-print’s product line has stayed focused on lithography tools for biological and sensor research since it registered its mark in 2021.

The trademark fight is the second legal dispute tied to the Terafab project in the past week, following a separate SpaceX suit aimed at keeping company records about the facility out of public view, as KBTX reported. Whether construction proceeds under the Terafab name now depends on a federal judge in Austin.

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