Piedmont Lithium Tesla Supply Deal: According to an amendment to their supply agreement, spodumene concentrate will now be provided to Tesla Inc. by Piedmont Lithium Inc. through 2025.
Lithium-containing spodumene is crucial in creating lithium-ion batteries for electric vehicles.
An option to extend the agreement with Tesla for an additional three years is included. According to the agreement, Piedmont will start providing Tesla with deliveries of spodumene concentrate, also known as SC6, in the second half of 2023 and continue through the end of 2025.
Throughout the agreement, pricing will be decided using a formula-based mechanism connected to average market prices for lithium hydroxide monohydrate. According to the firm, Piedmont will be charged according to market rates at the time of each shipment.
Piedmont stated that it anticipates obtaining SC6 from the Quebec-based North American Lithium Project.
“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 Chief Executive Keith Phillips said.
Piedmont Lithium shares increased by approximately 7% in premarket trading to $47.03.