Tesla is expanding its internal battery recycling program to lower its dependence on newly mined raw materials like lithium, nickel, and cobalt.
In a recent update on its
battery recycling operations, the electric vehicle maker shared that its U.S. facilities are now recovering over 90 percent of critical battery materials.
The company processed nearly 3,000 metric tons of materials at its upgraded Nevada location in 2025. Meanwhile, Gigafactory Texas is on track to process 3,000 metric tons of manufacturing scrap per year by the end of 2026. The Texas plant utilizes a dry shredding line to turn scrap into black mass, a concentrated powder containing valuable metals that can be recycled directly back into new cell manufacturing.
Tesla is also testing new lithium recovery techniques in Texas to support its Gulf Coast lithium refinery. The ultimate goal is to establish a closed-loop system that processes raw minerals, builds cells, and recycles scrap materials entirely within its own supply chain.
Tesla’s recycling strategy relies on a four-step process:
- Collecting end-of-life battery packs and factory scrap.
- Mechanically shredding material into black mass.
- Refining black mass into transitional intermediate materials.
- Manufacturing new battery cells and packs using recovered components.
By expanding recycling capacity across Nevada and Texas, the automaker aims to reduce environmental impact while securing a steady local supply of essential battery metals.
