Tesla supplier Core Lithium has said it is ready to begin shipping lithium, a key material for making batteries, by the end of the year. The companies entered into a binding Term Sheet in March 2022.
Australian company Core Lithium Ltd. said its Finness project near Darwin is progressing well. The miner said the progress came with the onset of the dry season and the commissioning of additional excavators and trucks at the site. The project mines lithium and intends to supply spodumene concentrate to companies such as Tesla and China's Ganfeng Lithium Co. and Sichuan Yahua Industrial Group Co.
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 tonnes 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 (Term Sheet).
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.
The list of conditions provides for the completion of negotiations by the parties and the signing of a final agreement on the purchase of the product by August 27, 2022, which must include a start date for deliveries by July 31, 2023 (subject to extension by mutual agreement).
Core Lithium said early production at the Finness 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.
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