ROBSTOWN, Texas — Carmaker Tesla wants to build a lithium-hydroxide refining plant near the Texas Gulf to help in battery production, and it's targeting an area near Robstown as one of at least two proposed sites.
Tesla is prepared to invest $365 million into the Nueces County facility through 2024 and ultimately hire 162 full-time workers by 2025. Tesla also would hire 250 temporary construction workers to build the facility at an average salary of $52,500 a year.
In an application with the Texas Comptroller's office dated Aug. 22, Tesla said the facility would be the first of its kind and would "process raw ore material into a usable state for battery production." Tesla would then ship that battery-grade lithium to its other battery manufacturing plants to be used in electric vehicles.
Tesla said it has not gotten any regulatory permits and that its final decision will be dependent on how much money it can get back from the state and Nueces County in property tax relief, calling it a "determining factor for investment in Texas."
"This project could be located anywhere with access to the Gulf Coast shipping channel," according to the application. "Currently, [Tesla] is evaluating a competing site in Louisiana as an alternative for the investment associated with this project."
If Tesla chooses the site near Robstown, it says it could start construction as early as December. The facility would take about two years to build.
Where Tesla is looking to build in Nueces County
Tesla is targeting the La Paloma-Lost Creek area southwest of Robstown city limits for its proposed refining facility. The exact location would be at Hutto Road and County Road 28. This area is part of the Robstown ISD school district.
How much could Tesla get in tax incentives?
If the application is approved, Tesla is expected to get nearly $16.2 million in property tax relief over the 10-year period, including about $2.5 million in 2025 when the tax relief starts.
Robstown ISD filed the tax relief application, called a Chapter 313. This Texas tax law allows a school district to offer property tax relief for up to 10 years. Tesla wants to cap the appraised value of its facility at $20 million even though it expects the property to be worth $254 million in 2025.
Even if the property taxes are capped at $20 million, that could still be a windfall for Robstown ISD and Nueces County. Currently the property on that piece of land is valued at less than $280,000.
In its application, Robstown ISD said it expects the school board to finalize the agreement in December. Tesla footed the school district's $115,000 application fee, which is standard practice.
Nueces County is also expected to reach a similar deal with Tesla to provide tax breaks. We reached out to Nueces County Judge Barbara Canales, but she declined to comment. The Corpus Christi Regional Economic Development Corporation interim CEO Mike Culbertson also declined to comment.