Australian junior Piedmont Lithium (ASX: PLL) shares rose nearly 84% in Sydney on Monday after confirming that they had signed a sale agreement with Tesla to supply the manufacturer with high purity lithium ore electric vehicles for up to a decade.
Piedmont ran the ad last week, following Tesla’s “Battery Days,” but the Australian Stock Exchange said it would not publish it at the time.
The initial five-year agreement will cause Piedmont to obtain about a third of its planned 160,000-ton spodumin concentrate from its North Carolina warehouses.
The initial five-year agreement will cause Piedmont to obtain about a third of its planned 160,000-tonne spodumin concentrate from its North Carolina deposits. The two corporations can then extend the contract for five years.
Piedmont President and CEO Keith Phillips said the deal represented the start of the first national lithium chain in the United States.
“We will now drive the progression of our mine/concentrator to Tesla’s plans, paints to further expand our mineral resources and potentially build our expected annual production capacity of spodumna concentrate,” Phillips said in the statement.
The agreement is conditional on any of the corporations agreeing to begin deliveries between July 2022 and July 2023, Piedmont Lithium said.
The company, which aims to expand a fully incorporated hydroxide spodumena business in North Carolina, will also advance those plans.
Piedmont’s ultimate purpose is to be the only manufacturer incorporated into the world of lithium hydroxide and spodumin miner.
The company has two chemical plants to produce more than 45,000 tpa of lithium hydroxide for batteries.
You already have a site in Kings Mountain, North Carolina and are actively on a site for a moment, which is expected to be secured until the end of the year.
Tesla CEO Elon Musk last week shared his vision for Tesla’s new proprietary batteries and claimed he had received rights to 10,000 acres in Nevada, where he intends to produce lithium from clay deposits through an internal process.
Tesla’s inventory lost more than $30 billion in the market as a result of the ads.
The electric vehicle manufacturer also revealed its goal of building a lithium hydroxide chemical plant in Austin, Texas, adjacent to its Terafactory/Gigafactory 5, which has been structured since July.
The plant, also known as Giga Texas and Giga Austin, will convert the spodumena Tesla acquires from Piedmont Lithium and other sources.
The corporate aims to put it into service until the end of 2021 and this would mark an automobile manufacturer’s first step in chemical lithium production.
Nevada already has several lithium clay projects under development, adding one from Lithium Americas, which has been approved by the federal government for more than a decade, and another from Ioneer Ltd.
Albemarle (NYSE: ALB) operated the only existing lithium mine in the US. But it’s not the first time About 322 km (200 miles) north of Las Vegas until it closed last month.