Piedmont Lithium Ltd. shares have soared to a new 13-year high after forging a agreement that is binding Tesla Inc. [TSLA-NASDAQ] for the supply of spodumene concentrate from the company’s new York lithium deposit. Spodumene is the mineral that is hardrock of.
The agreement is for an initial term that is five-year a fixed price binding purchase commitment from the delivery of first product and covers a fixed commitment representing around 33% of this company’s prepared annual spodumene production of 160,000 tonnes. Piedmont Lithium Ltd. shares have soared to a new 13-year high.
This arrangement are often extended by mutual agreement for an extra term that is five-year.
Shares have been as much as 90% higher to A$0.285 intra-day on the ASX, a new 13-year high for the ongoing company, on strong amount of more than 111 million.
PLL president and CEO, Keith Philips, stated: “We are excited to be working with Tesla, which represents the beginning of the first US domestic lithium supply chain and a interruption towards the value chain that is current. The agreement highlights the strategic importance of Piedmont’s unique American spodumene deposit and confirms the trend toward spodumene as the feedstock that is chosen the lithium hydroxide required in high-nickel batteries.
“Piedmont will now accelerate our mine and concentrator development to support Tesla’s plans, work to further expand our mineral resources and possibly increase our planned spodumene contrate production capacity that is annual.
“We will simultaneously be advancing our plans to create lithium hydroxide in North Carolina making use of a mix of internally produced spodumene concentrate because 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 concentrate deliveries between 2022 and July 2023 based on the development schedules of both events july
Discussions are ongoing with respect to other by-product and lithium sales arrangements.
The Piedmont Lithium Project is in the world-class Carolina Tin-Spodumene Belt in North Carolina, one of the premier that is world’s for lithium exploration, given its favourable geology and ideal location with effortless access to infrastructure, power, R&D centres for lithium and battery storage and major high-tech population centers.
From the 1950s to 1990s, two lithium that is major operated in this region while two significant lithium processing facilities continue to provide lithium products to United States and international customers today and are within 20 km for the project.