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Tesla’s proposed TX lithium refinery takes step forward as school district ratifies tax abatements
Tesla’s proposed lithium refinery in Texas seems to have taken another step forward after a South Texas school district approved an incentives agreement for the project.
During a special meeting, the Robstown Independent School District approved a taxable value limitation for Tesla’s proposed lithium refinery under Chapter 313 of the Texas Tax Code. The vote was unanimous, hinting at the board’s support for the American electric vehicle maker.
Tesla has noted that it may invest about $365 million into the proposed lithium refinery. Thanks to the incentives agreement, the land value for taxes that would be paid to the Robstown Independent School District would be limited to $20 million for the plant’s first 10 years in operation, starting in 2025. According to an Austin Business Journal analysis, this could save Tesla an estimated $16.2 million on property taxes over that period.
Previous reports have indicated that Tesla is looking to build a plant near Robstown, Texas, that would process, refine, and manufacture battery materials for the company’s supply chain. The plant’s final product will be battery-grade lithium hydroxide, which will then be used in electric vehicle batteries and big battery systems at Tesla’s manufacturing sites.
Tesla is also looking to secure property tax incentives under Chapter 312 of the Texas Tax Code with Nueces County. Chapter 312 allows a property owner to pay less in taxes for a certain amount of time if they make improvements to their property. A public hearing on December 5 was held to discuss possible Chapter 312 tax abatements for Tesla’s proposed lithium refinery.
At the public meeting, Tesla representatives such as Senior Global Director Rohan Patel emphasized that the proposed lithium refining facility in Nueces is a step toward the company’s goal of accelerating the advent of sustainable energy. In their presentation, they said that the facility would not produce lithium batteries in a conventional manner in order to limit waste production and pollution. The representatives also said that Tesla’s lithium battery production process would use less water.
“For this facility, the needs are fairly small, compared to an industrial facility, many industrial facilities that exist here, so what we’ve been told from the water authority, now I don’t have the facts and figures of what exactly is needed, but we’re happy to get that to you,” Patel said.
Patel and Tesla Senior Manager Karen Steakley shared a 10-minute presentation about the proposed facility during the public meeting. Tesla’s proposal had polarizing reactions from the event’s attendees. Some, such as 43-year-old chemical engineer and former Robstown school board member Pablo Avila told the Corpus Christi Caller Times that he was excited about Tesla’s planned lithium refinery. Some attendees, however, complained that Tesla’s presentation did not include specific information about the facility’s potential environmental issues. Others also questioned if Tesla, which is led by Elon Musk, one of the world’s richest people, still needed tax abatements.
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Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.
Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Tesla highlights the Megapack site replacing Hawaii’s last coal plant
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.
Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.
Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
Tesla Megapacks chosen for 548 MWh energy storage project in Japan
