Piedmont Lithium Inks Agreement with Tesla

Piedmont Lithium Ltd of Australia has entered into a binding agreement with Tesla Inc of Palo Alto, CA for the supply of spodumene concentrate from Piedmont’s North Carolina deposit to Tesla. The agreement is for an initial five-year term on a fixed-price binding purchase commitment and may be extended for a second five-year term.

The agreement covers a commitment representing approximately one-third of Piedmont’s planned production of 160,000 tonnes/year. And is conditional upon Tesla and Piedmont agreeing to a start date for spodumene concentrate deliveries between July 2020 and July 2023 based on the development scheduled for both parties.

Keith D Phillips, Piedmont’s CEO, commented, “We are excited to be working with Tesla, which represents the start of the first U.S. domestic lithium supply chain and a disruption of the current vale chain. 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.

We will now accelerate our mine/concentrator development to support Tesla’s plans, work to further expand our mineral resources, and potentially increase our planned annual spodumene concentrate 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.”

Volume 34, Issue 19

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