Deal To Supply Tesla With Spodumene Concentrate
Piedmont Lithium (ASX: PLL) signed a binding sales agreement to supply electric vehicle and energy storage specialist Tesla with its proposed spodumene concentrate product from its North Carolina project.
The deal is initially for five years on a fixed-price basis and can be extended a further five years by mutual agreement.
Piedmont President and CEO Keith Philips said the agreement covers a fixed commitment for approximately one-third of the company’s planned 160,000 tonne per annum spodumene production.
“We are excited to be working with Tesla, which represents the start of the first US domestic lithium supply chain and a disruption to the current value chain,” Mr Philips said.
“The agreement highlights the strategic importance of Piedmont’s unique American spodumene deposit and confirms the trend toward spodumene as the preferred feedstock for the lithium hydroxide required in high-nickel batteries.
“Piedmont will now accelerate our mine and concentrator development to support Tesla’s plans, work to further expand our mineral resources and potentially increase our planned annual spodumene contrate production capacity.
“We will simultaneously be advancing our plans to produce lithium hydroxide in North Carolina using a combination of internally produced spodumene concentrate as well as material sourced from other producers around the world.”