Revenue is expected to generate 10 to 20 per cent of Piedmont`s total revenue from its mining hydroxide project. “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. At the same time, we will advance our lithium hydroxide production projects in North Carolina using a combination of in-house spodume concentrate and materials from other manufacturers around the world. Piemont announced its agreement with Tesla on its website on September 23, before the message was published on the ASX, but it was removed shortly thereafter. 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 representing about one-third of the planned concentrated spodume 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. Five-year fixed-rate agreement with a five-year optional extension As part of its agreement, Piedmont will provide its spodumen at a fixed price, with the possibility of renewing its sales contract for a further five years. The initial five-year agreement requires Piedmont to supply about one-third of its 160,000 tonnes of projected spodumen concentrate from its North Carolina deposits. Both companies have the option of renewing the contract for a further five years. “We look forward to working with Tesla, which marks the beginning of the first lithium supply chain in the United States and a disruption to the current value chain,” he said. Discussions on other lithium and by-product sales agreements Piedmont enters into a binding purchase agreement for the supply of concentrated spodumes to Tesla “The agreement underlines the strategic importance of the only U.S. spodumen storage site in Piedmont and confirms the trend towards spodumen as the preferred raw material for lithium hydroxide needed in high-interest batteries.” NEW YORK–(BUSINESS WIRE)-Piedmont Lithium Limited (“Piedmont” or “company”) is pleased to announce that it has entered into a binding agreement (“agreement”) with Tesla, Inc.
(“Tesla”) on the supply of concentrated spodumes (“SC6”) from North Carolina`s contribution to Tesla. Tim McKenna Investor and Government Relations T: 1 732 331 6457 E: firstname.lastname@example.org Piedmont said in a statement that the agreement marked the beginning of its first domestic lithium supply chain in the United States and that discussions were underway on other distribution agreements. Keith Phillips President – CEO T: 1 973 809 0505 E: email@example.com The spodumen is provided by the company through the company`s Piedmont Lithium project in the Carolina Zinn Spodumen Belt in North Carolina, USA, which aims to convert 22,700 tonnes of spodumen per year into battery-adapted hydroxic lithium.