Australia

Piedmont Lithium soars 84% on signing Tesla spodumene agreement

Piedmont Lithium Ltd (ASX:PLL) (NASDAQ:PLL) has soared to a new 13-year high after forging a binding agreement with Tesla Inc (NASDAQ:TSLA) for the supply of spodumene concentrate from the companys North Carolina deposit.

The agreement is for an initial five-year term on a fixed price binding purchase commitment from the delivery of first product and covers a fixed commitment representing around 33% of the companys planned annual spodumene production of 160,000 tonnes.

This arrangement may also be extended by mutual agreement for a second five-year term.

Shares have been as much as 84% higher to A$0.275 intra-day on the ASX, a new 13-year high for the company, on strong volume of more than 54 million.

“First US domestic lithium supply chain”

PLL president and CEO Keith D Philips said: “We are excited to be working with Tesla, which represents the start of the first US domestic lithium supply chain and a disruption to the current value chain.

“The agreement highlights the strategic importance of Piedmonts unique American spodumene deposit and confirms the trend toward spodumene as the preferred feedstock for the lithium hydroxide required in high-nickel batteries.

“Piedmont will now accelerate our mine and concentrator development to support Teslas plans, work to further expand our mineral resources and potentially increase our planned annual spodumene contrate production capacity.

“We will simultaneously be advancing our plans to produce lithium hydroxide in North Carolina using a combination of internally produced spodumene concentrate as well as material sourced from other producers around the world.”

The agreement is conditional upon Tesla and Piedmont agreeing to a start date for spodumene concentrRead More – Source