CORPUS CHRISTI, TX—Tesla has begun construction of a $1 billion factory here to produce lithium hydroxide for electric vehicle batteries. 

The 1,200-acre site will be the location of the first industrial deployment of an acid-free lithium refining process. This process eliminates the use of hazardous reagents and byproducts in favor of more inert options. The byproduct from this facility, a mixture of sand and limestone, will be useful in the production of construction materials, so the facility will produce less waste.