Piedmont Lithium amends supply deal with Tesla
Piedmont Lithium has amended its deal with Tesla to supply spodumene concentrate, a key raw material for making batteries, to the electric-car maker through 2025.
Shares of Piedmont jumped 8% in premarket trading to $47.50 on January 3, after the company announced the amended deal.
Under the new deal, the lithium miner will deliver about 125 000 metric tons of spodumene concentrate, or SC6, to Tesla beginning in the second half of 2023 through the end of 2025, from its project in Quebec.
The amended agreement, which is binding for a three-year term, includes an option to renew it for another three years.
The initial September 2020 contract called for a fixed commitment representing about one-third of Piedmont's planned SC6 production of 160 000 tonnes per annum from its North Carolina deposit, with a start date between July 2022 and July 2023.
Piedmont said on Tuesday SC6 production is expected to restart at the Quebec facility in the first half of 2023, with first commercial shipments expected to begin in the third quarter of the year.
Tesla, meanwhile, is building a plant in Texas that will convert Piedmont's SC6 into lithium hydroxide, a key building block for EV batteries.
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