Musk’s Tesla Lithium Plant in Texas Faces Water Shortage Concerns in Drought-Hit Area
In the dry and hot region of South Texas, where water is already a scarce resource, Elon Musk’s Tesla Inc. is nearing the completion of a billion-dollar lithium refinery that could require up to 8 million gallons of water per day. Despite facing challenges in securing a water contract for the facility, Tesla is determined to start production this year in its efforts to develop a domestic supply chain for the critical raw material used in electric vehicle batteries.
Located twenty miles outside of Corpus Christi, the plant has drawn attention from residents and officials in the small town of Robstown, who are worried about the impact on their already limited water supply. The area’s drought status was recently upgraded to an urgent level, with new restrictions on non-essential water use.
According to records obtained by Bloomberg News, Tesla’s estimated water usage for the plant has increased from 400,000 gallons per day to as high as 8 million gallons per day. This would be eight times the average residential water use in the nearby town of Robstown, which has a population of 3,804 households.
Despite concerns from local residents, Tesla has continued with construction and even held an event last month to showcase the plant to the community. This is not the first time Musk has faced pushback from regulations, and with the support of President-elect Donald Trump, who has also expressed skepticism towards government regulations, the Tesla CEO may be able to expedite the project.
The plant is located in an unincorporated area of Nueces County, where there are fewer rules and government oversight compared to bigger cities. Local officials have made little public pushback, and the facility is expected to bring in 250 permanent jobs with above-average salaries for the area.
In December, South Texas Water Authority passed an infrastructure deal that will allow Nueces Water Supply to sell rights to the pipe needed for Tesla to obtain water. Despite these efforts, concerns from residents and the drought conditions in the area raise questions about the sustainability of the plant’s water usage.
Photo: Tesla’s lithium refinery under construction in Robstown, Texas, on Sept. 18. Source: Kara Carlson/Bloomberg
Based on information from Insurance Journal, the original article can be found at: https://www.insurancejournal.com/news/southcentral/2025/01/07/807193.htm