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Tesla Signs Supply of Lithium Ore Contract With Piedmont of Australia

On Monday, Piedmont Lithium PLL.AX said it signed a five-year agreement with Tesla Inc TSLA.O to supply the U.S. electric car manufacturer with high-purity lithium ore mineral, triggering an 83 percent rise in the shares of the Australian lithium miner.
The initial five-year agreement means that Piedmont would supply approximately a third of its expected spodumene concentrate production of 160,000 tonnes per year from its North Carolina deposits.
There is an opportunity for both businesses to extend the contract for another five years. Australian miners’ shares have hit their peak since May 2007.
The deal comes on the heels of last week’s presentation of Tesla’s “Battery Day,” when Chief Executive Elon Musk shared his vision of modern, patented Tesla batteries, during which Tesla stock lost more than $30 billion in market value.
In a statement, Piedmont said that the deal marked the beginning of the first domestic lithium supply chain in the U.S. and that negotiations on other distribution agreements are continuing.
Outside of normal business hours, Tesla did not respond to a Reuters request for comment.
The arrangement is conditional on both businesses agreeing to commence deliveries between July 2022 and July 2023, the Australian company said.

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