Tesla's Lithium Refinery in Texas, US Officially Put Into Operation | Volkswagen Acquires Stake in North American Lithium Mine to Secure Lithium Concentrate Supply [Overseas Lithium News]

Published: Dec 20, 2024 17:06

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【Overseas Lithium News】 ► Tesla's lithium refinery in Texas, US, has been officially put into operation. ► Volkswagen has invested 69 million Canadian dollars in North American lithium mines, finalising a long-term agreement for 1 million mt of lithium concentrate annually. ► Lotte will begin mass production of LFP cathode active material in 2025, becoming the first in South Korea.

Tesla's Lithium Refinery in Texas Officially Put Into OperationTesla's lithium refinery near Corpus Christi, Texas, US, has officially been put into operation, with a total investment of $375 million. Covering an area of 1,200 acres, Tesla stated that the refinery's designed annual capacity is sufficient to support battery production for over 1 million EVs, equivalent to approximately 40,000 to 50,000 mt of lithium carbonate equivalent (LCE).This refinery is regarded as North America's first large-scale battery-grade lithium chemicals refining facility. It employs Tesla's proprietary acid-free process, avoiding the use of traditional harmful acids. By-products from the process will be recycled into construction materials, further enhancing the facility's sustainability.Tesla is expected to achieve full target capacity by 2025 to meet the growing demand in the EV market while strengthening its position in North America's critical battery raw material supply chain.Volkswagen Invests C$69 Million in North American Lithium Mine, Finalises Long-Term Offtake Agreement for 100,000 mt of Lithium Concentrate AnnuallyOn December 18, Volkswagen Group announced a strategic partnership with North American lithium mine developer Patriot Battery Metals, aiming to strengthen its EV battery supply chain in North America and Europe through equity investment and long-term offtake agreements. Volkswagen Finance Luxemburg, a subsidiary of Volkswagen Group, will acquire 9.9% of Patriot's issued shares at a subscription price of C$4.42 per share, with the total transaction amounting to approximately C$69 million (around $48 million).The investment will be used to develop the Shaakichiuwaanaan lithium mine project in Quebec, Canada. The partnership includes a 10-year binding offtake agreement under which Volkswagen's wholly-owned battery subsidiary, PowerCo SE, will purchase 100,000 mt of spodumene concentrate with a grade of SC5.5 annually from the project, accounting for approximately 25% of the project's Phase 1 production. These supplies will support PowerCo's battery plants in North America and Europe, including a planned battery gigafactory in St. Thomas, Canada, with an annual capacity of 90 GWh. The two parties have also signed a memorandum of understanding (MoU) to promote the development of an environmentally compliant lithium supply chain, potential downstream processing facilities, and securing government support. Upon the completion of the feasibility study for the Shaakichiuwaanaan project, Volkswagen may provide additional financing in exchange for further offtake rights.Lotte to Begin Mass Production of LFP Cathode Materials in 2025, Becoming the First in South KoreaAccording to local media reports, Lotte Energy Materials will become the first South Korean company to produce lithium iron phosphate (LFP) cathode active materials for batteries. The company has completed the construction of a pilot production line at its plant in Iksan, North Jeolla Province, South Korea, and plans to begin mass production early next year. This pilot line has an annual capacity of 1,000 mt, marking a significant shift for South Korean companies in battery technology from a focus on NCM batteries to LFP batteries.Lotte stated that it has rapidly transitioned to LFP cathode production by upgrading its existing LMO cathode production line. The company has already sent samples to major domestic battery manufacturers, including LG Energy Solution (LGES), Samsung SDI, and SK On. This development aligns with LGES's earlier 39 GWh supply agreement with Renault and Samsung SDI's ongoing construction of an LFP battery production line in South Korea.

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