Stock Groups

Australia’s Core Lithium enters into supply deal with Tesla, shares jump -Breaking

[ad_1]

© Reuters. FILEPHOTO: A Tesla logo appears on a car at Los Angeles, California (USA), July 9, 2020. REUTERS/Lucy Nicholson

(Reuters) – Australia’s Core Lithium Ltd has entered into a deal with Tesla Inc (NASDAQ:) Inc on Wednesday to supply its electric vehicle maker in the United States with lithium spodumene. This agreement sent Core Lithium Ltd shares higher by 13% during early trading.

Due to an exponential increase in electric vehicle sales (EV), the deal shows the demand for batteries metals like nickel, cobalt, and lithium. This is part of a shift towards a sustainable future.

Core Lithium stated that it will supply Tesla up to 110,000 dry tonnes of spodumene concentrate sourced from the flagship Finniss Project, Australia’s Northern Territory. This was over four years.

According to https://termsheet.com, the first Finniss lithium production is set for the fourth quarter of 2022. The supply to Tesla will begin in the second half 2023.

Core Lithium was approved by Chinese regulators in October to provide the raw materials for making EV battery to Ganfeng Lithium. Ganfeng Lithium is one of the most important producers of lithium chemicals.

As carmakers around the globe race for supplies of parts needed to make EVs, Tesla has made similar deals over the last few months with Syrah Resources and Liontown Resources in Australia.

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs include stocks, futures, indexes and Forex. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]