Electric-vehicle (EV) pioneer Tesla (NASDAQ: TSLA) is exploring the feasibility of developing a battery-grade lithium hydroxide refinery on the Gulf Coast of Texas or Louisiana, according to its late-August filing of an application seeking a property tax break in Texas.

Like other EV makers, Tesla's supply chain is dependent on lithium -- which has soared in price due to tight supply -- because it's used to produce the lithium-ion batteries that power EVs. Tesla also uses these batteries in its energy-storage products.

Here's what investors should know.

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Source Fool.com