Tesla and Core Lithium agree to extend the termination date for the binding off-take term sheet to October. The companies previously entered into a legally binding agreement for the supply of up to 110,000 tonnes of Li2O spodumene concentrate.
Tesla and Australia's Core Lithium have 'mutually' agreed to extend the termination date for their binding offtake term sheet to October 26. Through the partnership with Tesla, Core Lithium has a chance to become the next profitable medium-to-large manufacturer. Previously, the final date for the completion of the negotiations was set for August 27.
In March 2022, Core Lithium announced that it had entered into a legally binding agreement with Tesla for the supply of up to 110,000 tons of Li2O spodumene concentrate from the Finniss Lithium Project over a term of four years, with pricing referenced to the market price for spodumene concentrate, subject to a price floor and ceiling.
In September 2021, Core Lithium's Board of Directors made a final investment decision to commence the development of the wholly-owned Finniss project located near Darwin in the Northern Territory. The company is fully funded to deliver the Finniss Project, which has started construction, through to the first lithium concentrate production scheduled for Q4 2022.
In a June 2022 statement, Core Lithium said that early production at the Finniss project was affected by higher rainfall and a prolonged rainy season, resulting in a temporary increase in fuel consumption and a postponement of open-pit mining. The statement said the year-end target is also subject to build-up, and that the site avoids further virus- or weather-related delays.
As of August 2022, Tesla has also agreed to provide additional support to Core Lithium to help successfully complete the third phase of the expansion and bring its lithium chemical product into its supply chain.
© 2022, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.