Piedmont Lithium Secures Major Supply Deal with Tesla
Piedmont Lithium Ltd. has entered a binding agreement with Tesla Inc. to supply spodumene concentrate for five years. This deal is significant as it could represent up to 20% of Piedmont's total revenue during the initial term.
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Piedmont Lithium Ltd. has signed a five-year binding agreement with Tesla Inc. for the supply of spodumene concentrate from its North Carolina deposit, covering approximately one-third of its planned production of 160,000 tonnes per annum. The agreement may extend for an additional five years and is contingent on establishing a start date for deliveries between July 2022 and July 2023.
This partnership is expected to generate 10% to 20% of Piedmont's total revenue from its proposed integrated mine-to-hydroxide project. The stock for Piedmont surged 178%, while Tesla's shares increased by 3%. The strategic collaboration underscores the growing importance of spodumene in lithium hydroxide production for high-nickel batteries.
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