Tesla secures lithium supply through Core Lithium deal
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Tesla (NASDAQ:TSLA)
entered into an agreement with Australian miner Core Lithium (OTCPK:CXOXF) to secure supply of lithium spodumene.
The four-year deal will see Core Lithium supply Tesla with up to 110,000 dry metric tons of spodumene concentrate from its flagship Finniss Project in Australia's Northern Territory. Pricing will be based on the current market price for spodumene concentrate, with a floor and ceiling set as part of the terms of the deal.
"Core Lithium is thrilled to have reached this agreement with Tesla and look forward to further growing this relationship in the years to come. Tesla is a world leader in electric vehicles, and its investment in offtake and interest in our expansion plans for downstream processing are very encouraging," noted Core Lithium Managing Director Stephen Biggins.
Shares of Core Lithium rose 15% in Australia on Wednesday. Tesla (TSLA) gained 1.06% in the U.S. during the premarket to land at $873.57.
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