The agreement is valid for an initial term of five years for a mandatory fixed-price purchase obligation for the delivery of the first product and may be extended by mutual agreement for a second five-year period. The agreement includes a firm commitment that extends about one-third of the planned sc6 production of 160,000 tonnes per year for an initial five-year period, as well as an additional amount to be delivered at Tesla`s choice. Paragraph SC6 is expected to generate between 10 and 20% of the total revenue from the Piedmont from its integrated mine hydroxide project for the first five-year five-year period. The agreement is conditional on Tesla and Piedmont agreeing to a launch date for concentrated spodume deliveries between July 2022 and July 2023, based on development plans between both parties. Albemarle (NYSE: ALB) operated the only existing lithium mine in the United States at a site about 322 km north of Las Vegas until it was shut down last month. The agreement is conditional on Tesla and Piedmont agreeing to a launch date for concentrated spodume deliveries between July 2022 and July 2023, based on development plans between both parties. Piedmont Lithium ((PLL)) indicated that it has entered into a binding sales agreement with Tesla Inc (NASDAQ:TSLA) for the supply of concentrated spodumes (SC6) to the main electric vehicle company for fixed price agreements for an initial period of five years. The agreement is conditional on the extension of a second five-year term. We believe that this agreement is an important milestone for the PLL and that it holds the potential of other weight loss agreements for its by-products and lithium. Tesla CEO Elon Musk shared his vision of new Tesla batteries last week.
He also said he had secured rights to 10,000 hectares in Nevada, where he aims to produce lithium from clay deposits with an in-house process. As part of its agreement, Piedmont will supply its spodumen at a fixed price, with the possibility of renewing its sales contract for a further five years. Pitt Street Research Updates on Piedmont Lithium post its firm purchase agreement with Tesla We are also revering our sc6 production and sales modeling to incorporate PLL`s latest deal with Tesla. The main risks we see are: 1) the price of lithium-risk; 2) geological risk; 3) The risk of financing and 4) the risk of execution. Shares of Australian JuniorS Piedmont Lithium (ASX: PLL) rose nearly 84% in Sydney on Monday after confirming they had signed a purchase agreement with Tesla to supply the electric vehicle maker with high purity lithium-mineral ore for up to 10 years. The agreement applies to an initial five-year period on a fixed-price fixed-price obligation from the supply of the first product and includes a firm commitment representing approximately 33% of the company`s planned annual spodume production of 160,000 tonnes. The EV maker also announced plans to build a lithium hydroxide chemical plant in Austin, Texas. The facility will be adjacent to Terafactory/Gigafactory 5, which has been under construction since July.
In addition, the joint venture created by PLL and Ion Carbon – Minerals will contribute to the commercialization of by-products (quartz, mica and feldspar) and to the safeguarding of the abrasion agreements corresponding to the leakage of lithium. Piedmont will provide Tesla with a fixed amount of spodume concentrate, a lithium mineral typically extracted from pegmatite rock. By mutual agreement, the sales contract can be renewed for a second five-year term, Piedmont said. “We will now accelerate our mining/concentrator development to support Tesla`s plans, work to further develop our mineral resources and perhaps increase our expected annual production capacity of spodume concentrates.
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- Porvoo Agreement