Piedmont Lithium Signs Five-Year Supply Agreement with Tesla
Piedmont Lithium Ltd. has entered a five-year agreement to supply spodumene concentrate to Tesla Inc., covering a third of its annual output. This partnership is significant for both companies, as it positions Piedmont to generate 10% to 20% of its revenue from the lithium hydroxide project.
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Piedmont Lithium Ltd. has finalized a five-year binding supply agreement with Tesla Inc. for spodumene concentrate sourced from its North Carolina deposit, which will account for around 160,000 tonnes per annum. Deliveries are expected to commence between July 2022 and July 2023, with the potential for a five-year extension.
This collaboration is projected to contribute 10% to 20% of Piedmont's revenue from its integrated mine-to-hydroxide project. Following the announcement, Piedmont's stock increased by 178%, while Tesla's shares rose by 3%. The deal highlights the critical role of spodumene in the lithium hydroxide supply chain for high-nickel battery production.
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