Monday, January 30, 2023

Piedmont Lithium revises agreement with Tesla

Piedmont Lithium, a leading global developer of critical lithium resources for US electric vehicles (“EVs”), today announced that it has entered into an agreement with Tesla Inc. to supply North American Lithium’s Spodumene Concentrate (“SC6”) to the US automaker. amended the agreement. (“NAL”).

Piedmont and Tesla mutually agreed to modify their previous purchase agreement with the terms of this new agreement, which is binding for a period of three years and includes an option to renew for another three years. Under the amended agreement, Piedmont has agreed to deliver approximately 125,000 metric tons of SC6 to Tesla from the second half of 2023 through the end of 2025.

Under the Terms, the SC6 price will be determined by a mechanism based on a formula involving the average market price of lithium hydroxide monohydrate over the life of the agreement. The price received by Piedmont under the agreement with Tesla will be determined by market value at the time of each shipment.

“We are pleased to be able to partner with Tesla to supply lithium resources produced in North America,” said Keith Phillips, President and CEO of Piedmont Lithium.

He highlighted that “the landscape for electric vehicles and critical battery materials has changed significantly since 2020 and this agreement reflects the importance and growing demand for the lithium supply chain in North America.”

“This agreement helps ensure that these vital Quebec resources remain in North America and supports the Inflation Reduction Act’s mission to promote the US supply chain, the clean energy economy and global decarbonization.”, he concurs. Did.

Production of spodumene concentrate at NAL is expected to resume in the first half of 2023, with the first commercial shipment expected to begin in the third quarter of 2023.

Piedmont plans to deliver SC6 from NAL to Tesla under Piedmont’s purchase agreement with Siona Quebec, which gives Piedmont the right to purchase more than 113,000 metric tons per year, or 50%, of SC6 production. Piedmont’s purchase of SC6 from Siona Quebec is subject to a life-of-mine price floor and ceiling.

About Piedmont Lithium

Piedmont Lithium is developing a world-class, multi-asset integrated lithium business focused on enabling the transition to a net zero emissions world and building a clean energy economy in North America.

Their goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets in which they have an economic interest.

Their projects include partnerships with Carolina Lithium and Tennessee Lithium and Sayona Mining in Quebec and Atlantic Lithium in Ghana in the United States. These geographically diverse operations will allow them to play a key role in supporting the United States’ move toward energy independence and the electrification of energy transportation and storage.

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