Musk’s $1 Billion Tesla Plant Needs Water in Drought-Hit Texas

Twenty miles outside Corpus Christi, Texas — an area so dry the local water company distributes shower timers at high school football games — the world’s richest man is nearly done building a lithium refinery that could require as much as 8 million gallons of water per day.

In a rare public update on the $1 billion project, Tesla Inc. in December said it was starting to test the ability to process lithium through the new factory. But the carmaker still doesn’t have a contract for the water needed to operate the facility, presenting a hurdle for Chief Executive Officer Elon Musk’s goal of turning ...