Tesla Is Building a Lithium Refinery To Boost EV Production

Tesla will create a lithium refinery factory in Texas

Tesla

Tesla has broken ground on a new lithium refinery in Texas, with CEO Elon Musk setting the ambitious goal of producing enough battery-grade lithium to manufacture 1 million electric vehicles by 2025. This step expands Tesla's focus beyond automobile production and into lithium refining and processing, a critical aspect of fulfilling the company's EV sales objectives and addressing the lithium bottleneck that Musk sees as a significant barrier to EV production.

Addressing the Lithium Bottleneck for EV Production

For years, Musk has been emploring entrepreneurs to get into the lithium business, he referred to it as printing money, but also a necessary part of the vision of creating a future with sustainable transportation. Now, he has taken his own advice.

Musk has expressed concerns over the availability of battery-grade lithium, considering it a potential bottleneck for the advancement of electric vehicles. The new Texas refinery aims to alleviate this constraint by producing a substantial amount of lithium, positioning Tesla as a leader in automobile manufacturing and lithium refining. The groundbreaking initiative also reflects Tesla's commitment to advancing the EV market and promoting clean energy transportation.

Watch Tesla's Lithium Groundbreaking Event

Strengthening Self-Reliance and Reducing Dependency

Musk announced that Tesla aims to complete the factory construction by next year and achieve full production capacity by 2025. The move positions Tesla as the only major automaker in North America to refine its lithium, a domain currently dominated by China. Texas Governor Greg Abbott, who attended the groundbreaking ceremony, emphasized the importance of Texas being self-reliant and not dependent on foreign hostile nations for lithium. Tesla will continue to buy lithium from existing suppliers while refining its own, diversifying its supply sources and increasing security.

Environmentally-Friendly Lithium Refining Technology

Tesla is committed to using environmentally-friendly materials for its lithium refining process, forgoing conventional methods that rely on sulfuric acid and other strong chemicals. The new refining technology will use less hazardous reagents and create usable byproducts, making it a cleaner and safer operation. Musk assured that living near the refinery would not cause any adverse effects, although some environmental advocates have expressed concerns.

As Tesla spearheads its lithium production, it not only strengthens the company's self-reliance but also helps revolutionize the lithium refining industry with a greener and more sustainable approach, ultimately addressing the lithium bottleneck and paving the way for increased EV production.

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It's Happening: Rivian R2 Orders Start in June

Rivian Wave

Rivian is officially shifting into high gear as it prepares to put the R2 into the hands of customers. Following a strong first quarter where the company beat delivery estimates, the focus has moved entirely to the launch of its first mass-market SUV.

Reservation holders have started receiving emails from the automaker to confirm their delivery addresses and provide an update on the next steps. According to a screenshot shared by @gdann27 on X, Rivian has informed fans that "in June, we’ll be reaching back out with a date for when you can configure and order your R2."

The Road to June Deliveries

The timing of this email is critical. Rivian has consistently maintained that the R2 is on track for late spring 2026 deliveries. Opening the order configurator in June suggests that the actual delivery dates for the first wave of customers won't be far behind.

This update follows a recent executive interview, where it was revealed that employees would receive their units first to help validate the software before the public launch. For those who can't wait until June, Rivian is currently hosting a series of cross-country R2 viewing events to let people see the SUV in person.

R2 Lineup and Specs

When the configurator finally goes live, the R2 Performance will be the first model off the production line. Starting at $57,990, this top-tier trim features a dual-motor AWD system capable of 656 horsepower and a blistering 3.6-second 0–60 mph time. It also includes the signature "Drop Glass" rear window and 21-inch all-season wheels.

Rivian Wave

The rest of the R2 variants announced last month will follow a staggered rollout:

• R2 Premium ($53,990): Expected late 2026 with 450 hp and 330 miles of range.

• R2 Standard Long Range ($48,490): Arriving early 2027, this will be Rivian’s range leader at 345 miles.

• R2 Standard ($45,000): The most affordable base model is currently slated for late 2027.

The Performance trim will also feature an exclusive Launch Package for the very first group of reservation holders. If you are still trying to decide which model fits your lifestyle, you can check out our R2 vs. R1S comparison for a better idea of the size and feature differences.

A Critical Milestone

The R2 is more than just a new car for Rivian; it is a volume play designed to make the company profitable. By moving toward a June ordering window, Rivian is proving it can stick to a tight manufacturing schedule even while overhauling its platform for a new generation.

As we enter the spring window, Rivian’s lucky first customers are just weeks away from finally locking in their builds. Stay tuned, as the launch of the configurator will likely reveal even more granular details about interior materials and final accessory options for the R2.

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Rivian Beats Q1 Delivery Estimates as R2 Launch Nears

Rivian Wave

Rivian is kicking off 2026 with some much-needed momentum. While the electric vehicle industry has faced plenty of "doom and gloom" headlines lately, the Irvine-based automaker managed to beat Wall Street’s expectations for the first quarter, signaling that demand for its adventurous R1T and R1S is finally stabilizing.

According to the official announcement, the company produced 10,236 vehicles at its manufacturing facility in Normal, Illinois, and delivered 10,365 vehicles during the quarter ending March 31, 2026. These delivery figures comfortably surpassed analyst estimates of roughly 9,678 vehicles, proving that Rivian is effectively navigating a market recently hampered by the expiration of U.S. federal tax credits.

Breaking Down the Growth

When we look at the numbers year-over-year, the delivery growth is impressive. Rivian delivered 1,725 more vehicles than it did in Q1 2025, representing a 19.9% year-over-year increase. On a quarter-over-quarter basis, deliveries rose by 6.4% compared to the 9,745 units handed over in Q4 2025.

Production, however, saw a slight strategic dip. The 10,236 units produced this quarter represent a 30% decrease compared to the 14,611 units built in the same period last year. This suggests Rivian is focusing more on clearing out existing inventory and balancing its supply with current demand before its next massive manufacturing ramp.

Stabilizing Demand and Global Factors

Several factors are helping Rivian find its footing. While the loss of the $7,500 federal tax credit last fall initially hurt sales, rising gasoline prices — driven largely by the ongoing Iran war — have reportedly pushed more buyers back toward electric options.

Additionally, Rivian is making huge moves in the software and autonomy space. Just last month, the company signed a massive $1.25 billion deal with Uber to deploy R2 SUVs as robotaxis starting in 2028. This partnership, combined with Rivian’s reaffirmation of its 2026 delivery guidance of 62,000 to 67,000 vehicles, suggests the company’s long-term outlook remains incredibly strong.

The Road to R2

Everything Rivian is doing right now is essentially a warm-up for the all-important R2 launch. This midsize SUV is the company's first true mass-market play, and it officially begins deliveries later this spring with the $57,990 Performance Launch Edition.

To build excitement, Rivian is currently taking the R2 on a cross-country viewing tour, giving potential customers a chance to see the vehicle's features — like its spacious frunk and signature Drop Glass — in person. While the more affordable $45,000 R2 Standard won't arrive until late 2027, the success of the current R1 lineup provides a solid foundation for Rivian to eventually take on the Tesla Model Y.

Rivian will release its full first-quarter financial results after the market closes on Thursday, April 30, 2026. Investors will be watching closely to see if these higher delivery volumes are translating into the profitability targets the company has set for the end of the year.

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