Piedmont Lithium announced that it had modified its deal with Tesla, Inc. to provide the American automaker with spodumene concentrate (SC6) from North American Lithium (NAL).
Piedmont and Tesla have mutually agreed to update their previous offtake agreement with the parameters of this new agreement, which is binding for three years and includes a three-year renewal option. Piedmont has promised to deliver about 125,000 metric tonnes of SC6 to Tesla beginning in H2 2023 and continuing through the end of 2025 under the modified deal.
Throughout the period of the agreement, the SC6 pricing will be established by a formula-based process connected to average market prices for lithium hydroxide monohydrate. Market prices will set Piedmont’s pricing under the arrangement with Tesla at the time of each shipment.
Piedmont Lithium President and CEO Keith Philips expressed the company’s excitement to work with Tesla to provide lithium resources made in North America.
“The electric vehicle and critical battery materials landscape has changed significantly since 2020 and this agreement reflects the importance of — and growing demand for — a North American lithium supply chain. This agreement helps to ensure that these critical resources from Quebec remain in North America and support the mission of the Inflation Reduction Act to bolster the U.S. supply chain, the clean energy economy, and global decarbonization,” Philips stated.
Spodumene concentrate production at NAL is planned to resume in H1 2023, with the first commercial shipments beginning in Q3 2023. Piedmont intends to deliver SC6 to Tesla from NAL in accordance with Piedmont’s offtake agreement with Sayona Quebec, which entitled Piedmont to the greater of 113,000 metric tonnes per year or 50 per cent of SC6 output. Piedmont’s SC6 purchases from Sayona Quebec are subject to floor and ceiling pricing during the mine’s life.
 from North American Lithium (NAL).){kind=link}