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Tesla Inc on Monday broke ground on a Texas lithium refinery that CEO Elon Musk said should produce enough of the battery metal to build about 1 million electric vehicles (EVs) by 2025, making it the largest North American processor of the material. 

The facility will push Tesla outside its core focus of building automobiles and into the complex area of lithium refining and processing, a step Musk said was necessary if the auto giant was to meet its ambitious EV sales targets. 

“As we look ahead a few years, a fundamental choke point in the advancement of electric vehicles is the availability of battery grade lithium,” Musk said at the ground-breaking ceremony on Monday, with dozers and other earth-moving equipment operating in the background. 

Musk said Tesla aimed to finish construction of the factory next year and then reach full production about a year later. 

The move will make Tesla the only major automaker in North America that will refine its own lithium. Currently, China dominates the processing of many critical minerals, including lithium. 

“Texas wants to be able to be self-reliant, not dependent upon any foreign hostile nation for what we need. We need lithium,” Texas Governor Greg Abbott said at the ceremony. 

Musk did not specify the volume of lithium the facility would process each year, although he said the automaker would continue to buy the metal from its vendors, which include Albemarle Corp and Livent Corp. 

“We intend to continue to use suppliers of lithium, so it’s not that Tesla will do all of it,” Musk said. 

Albemarle plans to build a lithium processing facility in South Carolina that will refine 100,000 tons of the metal each year, with construction slated to begin next year and the facility coming online sometime later this decade. 

Musk did not say where Tesla will source the rough form of lithium known as spodumene concentrate that will be processed at the facility, although Tesla has supply deals with Piedmont Lithium Inc and others. 

‘Clean operations’

Tesla said it would eschew the lithium industry’s conventional refining process, which relies on sulfuric acid and other strong chemicals, in favor of materials that were less harsh on the environment, such as soda ash. 

“You could live right in the middle of the refinery and not suffer any ill effect. So they’re very clean operations,” Musk said, although local media reports said some environmental advocates had raised concerns over the facility. 

Monday’s announcement was not the first time that Tesla has attempted to venture into lithium production. Musk in 2020 told shareholders that Tesla had secured rights to 10,000 acres in Nevada where it aimed to produce lithium from clay deposits, which had never been done before on a commercial scale. 

While Musk boasted that the company had developed a proprietary process to sustainably produce lithium from those Nevada clay deposits, Tesla has not yet deployed the process. 

Musk has urged entrepreneurs to enter the lithium refining business, saying it is like “minting money.” 

“We’re begging you. We don’t want to do it. Can someone please?” he said during a conference call last month. 

Tesla said last month a recent plunge in prices of lithium and other commodities would aid Tesla’s bruised margins in the second half of the year. 

The refinery is the latest expansion by Tesla into Texas after the company moved its headquarters there from California in 2021. Musk’s other companies, including SpaceX and The Boring Company, also have operations in Texas. 

SEE ALSO: A related video by VOA’s Arash Arabasadi

“We are proud that he calls Texas home,” Abbott said, saying Tesla and Musk are “Texas’s economic juggernauts.” 
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Most Democrats and Republicans agree that the federal government should better regulate the biggest technology companies, particularly social media platforms. But there is little consensus on how it should be done. 

Concerns have skyrocketed about China’s ownership of TikTok, and parents have grown increasingly worried about what their children are seeing online. Lawmakers have introduced a slew of bipartisan bills, boosting hopes of compromise. But any effort to regulate the mammoth industry would face major obstacles as technology companies have fought interference. 

Noting that many young people are struggling, President Joe Biden said in his February State of the Union address that “it’s time” to pass bipartisan legislation to impose stricter limits on the collection of personal data and ban targeted advertising to children. 

“We must finally hold social media companies accountable for the experiment they are running on our children for profit,” Biden said.

A look at some of the areas of potential regulation: 

Children’s safety

Several House and Senate bills would try to make social media, and the internet in general, safer for children who will inevitably be online. Lawmakers cite numerous examples of teenagers who have taken their own lives after cyberbullying or have died engaging in dangerous behavior encouraged on social media. 

In the Senate, at least two bills are focused on children’s online safety. Legislation by Senators Richard Blumenthal, a Connecticut Democrat, and Marsha Blackburn, a Tennessee Republican, approved by the chamber’s Commerce Committee last year would require social media companies to be more transparent about their operations and enable child safety settings by default. Minors would have the option to disable addictive product features and algorithms that push certain content. 

The idea, the senators say, is that platforms should be “safe by design.” The legislation, which Blumenthal and Blackburn reintroduced last week, would also obligate social media companies to prevent certain dangers to minors — including promotion of suicide, disordered eating, substance abuse, sexual exploitation and other illegal behaviors. 

A second bill introduced last month by four senators — Democratic Senators Brian Schatz of Hawaii and Chris Murphy of Connecticut and Republican Senators Tom Cotton of Arkansas and Katie Britt of Alabama — would take a more aggressive approach, prohibiting children under 13 from using social media platforms and requiring parental consent for teenagers. It would also prohibit companies from recommending content through algorithms for users under 18.

Critics of the bills, including some civil rights groups and advocacy groups aligned with tech companies, say the proposals could threaten teens’ online privacy and prevent them from accessing content that could help them, such as resources for those considering suicide or grappling with their sexual and gender identity. 

“Lawmakers should focus on educating and empowering families to control their online experience,” said Carl Szabo of NetChoice, a group aligned with Meta, TikTok, Google and Amazon, among other companies. 

Data privacy 

Biden’s State of the Union remarks appeared to be a nod toward legislation by Senators Ed Markey, a Massachusetts Democrat, and Bill Cassidy, a Louisiana Republican, that would expand child privacy protections online, prohibiting companies from collecting personal data from younger teenagers and banning targeted advertising to children and teens. The bill, also reintroduced last week, would create an “eraser button” allowing parents and kids to eliminate personal data, when possible. 

A broader House effort would attempt to give adults as well as children more control over their data with what lawmakers call a “national privacy standard.” Legislation that passed the House Energy and Commerce Committee last year would try to minimize data collected and make it illegal to target ads to children, usurping state laws that have tried to put privacy restrictions in place. But the bill, which would have also given consumers more rights to sue over privacy violations, never reached the House floor. 

Prospects for the House legislation are unclear now that Republicans have the majority.

TikTok, China 

Lawmakers introduced a raft of bills to either ban TikTok or make it easier to ban it after a combative March House hearing in which lawmakers from both parties grilled TikTok CEO Shou Zi Chew over his company’s ties to China’s communist government, data security and harmful content on the app. 

Chew attempted to assure lawmakers that the hugely popular video-sharing app prioritizes user safety and should not be banned because of its Chinese connections. But the testimony gave new momentum to the efforts. 

Soon after the hearing, Missouri Senator Josh Hawley, a Republican, tried to force a Senate vote on legislation that would ban TikTok from operating in the United States. But he was blocked by a fellow Republican, Kentucky Senator Rand Paul, who said that a ban would violate the Constitution and anger the millions of voters who use the app. 

Another bill sponsored by Republican Senator Marco Rubio of Florida would, like Hawley’s bill, ban U.S. economic transactions with TikTok, but it would also create a new framework for the executive branch to block any foreign apps deemed hostile. His bill is co-sponsored by Representatives Raja Krishnamoorthi, an Illinois Democrat, and Mike Gallagher, a Wisconsin Republican. 

There is broad Senate support for bipartisan legislation sponsored by Senate Intelligence Committee Chairman Mark Warner, a Virginia Democrat, and South Dakota Senatpr John Thune, the No. 2 Senate Republican, that does not specifically call out TikTok but would give the Commerce Department power to review and potentially restrict foreign threats to technology platforms. 

The White House has signaled it would back that bill, but its prospects are uncertain. 

Artificial intelligence 

A newer question for Congress is whether lawmakers should move to regulate artificial intelligence as rapidly developing and potentially revolutionary products like AI chatbot ChatGPT begin to enter the marketplace and can in many ways mimic human behavior. 

Senate Democratic leader Chuck Schumer of New York has made the emerging technology a priority, arguing that the United States needs to stay ahead of China and other countries that are eyeing regulations on AI products. He has been working with AI experts and has released a general framework of what regulation could look like, including increased disclosure of the people and data involved in developing the technology, more transparency and explanation for how the bots arrive at responses.

The White House has been focused on the issue as well, with a recent announcement of a $140 million investment to establish seven new AI research institutes. Vice President Kamala Harris met Thursday with the heads of Google, Microsoft and other companies developing AI products.
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