- Piedmont Lithium (PLL) amends its supply agreement with Tesla for spodumene concentrate from the North American Lithium project near Quebec
- The revised off-take contract will see Piedmont deliver approximately 125,000 metric tons of SC6 spodumene concentrate to Tesla
- The agreement is binding for a three-year term, starting from the second half of 2023
- Piedmont told investors spodumene concentrate production is expected to restart at the project during H1 2023, with first commercial shipments anticipated for Q3
- Piedmont Lithium last traded at 65.5 cents on January 3
Piedmont Lithium (PLL) has amended its agreement with Tesla to supply the electric vehicle maker with spodumene concentrate from the North American Lithium project near Quebec.
The two companies have mutually agreed to amend a previous off-take contract, with Piedmont to now deliver approximately 125,000 metric tons of SC6 spodumene concentrate to Tesla.
The agreement is binding for a three-year term from the second half of 2023 and includes the option to renew for a further three years.
Pricing of the concentrate will be determined by a “formula-based mechanism” linked to average market prices for lithium hydroxide monohydrate throughout the term of the agreement. The pricing received by Piedmont will then be determined by market prices at the time of each shipment.
Piedmont Lithium President and CEO Keith Phillips said the electric vehicle and critical battery materials landscape had changed “significantly” since 2020, and the amendment reflected the growing demand for a North American lithium supply change.
“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 decarbonisation,” Mr Phillips said.
The North American lithium project is owned by Sayona Quebec which is a joint venture between Sayona Mining (ASX:SYA) with a 75 per cent stake, and Piedmont Lithium, which holds the remaining 25 per cent.
Piedmont said spodumene concentrate production is expected to restart at the project during this half of the year, with first commercial shipments anticipated for the third quarter of 2023.
The SC6 will be delivered under Piedmont’s off-take agreement with Sayona Quebec, which entitles Piedmont to purchase the greater of 113,000 metric tons per year or 50 per cent of SC6 production.
Piedmont Lithium last traded at 65.5 cents on January 3.