Tesla Touts First-Of-Its-Kind Lithium Refinery In US - Elon Musk Calls It 'Largest' In America

Tesla Inc. (NASDAQ:TSLA) has revealed its new Lithium Refinery in Texas, intending to scale up battery production and localize supply chains.

First-Of-Its-Kind Facility, Tesla Says

The company's official North America handle posted a video on the social media platform X on Wednesday, showcasing the company's Lithium refinery in Texas. "Regionalized access to critical battery minerals brings jobs, cuts emissions & helps accelerate our mission," Tesla said in the post.

The video described how the facility was the first "Spodumene to Lithium Hydroxide refinery in North America." Spodumene is a naturally occurring ore that is touted as a crucial source of Lithium.

Elon Musk Hails Facility

In a post on the social media platform X, Elon Musk hailed the facility, calling it the "largest Lithium refinery in America," on Wednesday.

In a separate post, the billionaire also shared that the automaker had "built the most advanced lithium refinery in the world," calling it "very clean."

Tesla's US Sales

The news comes as the Tesla Model Y became the best-selling EV in the U.S. in 2025, selling over 357,528 units of the SUV in 2025. The Model Y was joined by the Model 3, which sold over 192,440 units last year. The company's total sales stood at 589,000 units.

Tesla also showcased the 7-seater version of the Model Y SUV, available exclusively in the U.S. with the Premium, all-wheel drive trim for an extra $2,500. It's worth noting that the Tesla Model Y also has a 6-seater layout version, offered in China as the Model Y L, which has proven successful for the company in the world's largest car market.

Tesla Battery Storage

The new facility could also help Tesla scale its energy storage business, which has recorded growth recently. For Q4, Tesla's energy storage deployments reached a record 14.2 gigawatt-hours, outlining a new crucial revenue stream for Musk's automaker.

According to Benzinga Edge Rankings, Tesla scores well on Momentum and offers a favorable price trend in the Short, Medium, and Long term.

Price Action: TSLA declined 1.79% at Market close on Wednesday to $439.20, slipping 0.27% further to $438 during After-hours trading. 

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