Feature image: Tesla
On Monday, Piedmont Lithium announced that it has signed a five-year contract with Tesla to supply high-purity lithium. The initial agreement implies that Piedmont will supply about a third of its planned spodumene concentrate production from its North Carolina fields. Both companies have the option to extend the deal.
The agreement is for an initial five-year term on a fixed-price binding purchase commitment from the delivery of the first product, and may be extended by mutual agreement for a second five-year term. The Agreement covers a fixed commitment representing approximately one-third of Piedmont's planned SC6 production of 160,000 tonnes per annum for the initial five-year term, as well as an additional quantity to be delivered at Tesla's option.
"The Agreement is conditional upon Tesla and Piedmont agreeing to a start date for spodumene concentrate deliveries between July 2022 and July 2023 based on the development schedules of both parties."
Source: Piedmont Lithium
Piedmont Lithium is an emerging lithium chemicals company focused on the development of its 100%-owned Piedmont Lithium Project in North Carolina, with the goal of becoming a strategic domestic supplier of battery-grade lithium hydroxide and other chemicals to the growing electric vehicle and battery storage markets in the United States.
The Piedmont Lithium Project is located in one of the premier regions in the world for lithium exploration, given its favorable geology and ideal location with easy access to infrastructure, power, R&D centers for lithium and battery storage, and major high-tech population centers.
Piedmont said in a statement that the agreement launched its first lithium supply chain in the United States and that negotiations for other sales agreements are ongoing.
Keith D. Phillips, President and Chief Executive Officer, commented:
“We are excited to be working with Tesla, which represents the start of the first US domestic lithium supply chain and disruption to the
current value chain.
“We will now accelerate our mine/concentrator development to support Tesla’s plans, work to further expand our mineral resources, and potentially increase our planned annual spodumene concentrate production capacity.”
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