Piedmont Lithium pops 8% on new Tesla supply deal
Olemedia

Piedmont Lithium (NASDAQ:PLL) +7.9% pre-market Tuesday after saying it amended its deal with Tesla (NASDAQ:TSLA) to supply the automaker with spodumene concentrate through the end of 2025, with an option to renew for an additional three years.
Under the deal, Piedmont (PLL) will deliver 125K metric tons of spodumene concentrate - or SC6 - to Tesla (TSLA) beginning in H2 2023 through the year-end 2025, with pricing to be determined by a formula-based mechanism linked to average market prices for lithium hydroxide monohydrate throughout the term of the agreement.
Piedmont (PLL) said it expects to source SC6 from the North American Lithium project in Quebec; its offtake deal with Sayona Quebec entitles the company to purchase the greater of 113K metric tons/year or 50% of SC6 production.
"This agreement helps to ensure that these critical resources from Quebec remain in North America and support the mission of the Inflation Reduction Act to bolster the U.S. supply chain, the clean energy economy, and global decarbonization," Piedmont Lithium (PLL) CEO Keith Phillips said.
Tesla (TSLA) trades lower pre-market after reporting Q4 deliveries that came up short of expectations.