Ann: Largest Shareholder to Double Lithium Hydroxide Output, page-4

28 April 2021Core’s largest shareholder and key Tesla supplier Yahua to double planned lithium hydroxide outputHighlights• Core’s largest shareholder and key Tesla supplier, Yahua, plans to more than double lithium hydroxide output• Yahua’s output to increase from 20,000tpa to 50,000tpa of lithium hydroxide• Core has binding offtake to supply Yahua with 75,000tpa of high-quality lithium concentrate for Yahua’s hydroxide operation• Core is targeting a start of construction of Finniss Lithium Project this yearAdvanced Australian lithium developer Core Lithium Ltd (ASX: CXO) (Core or Company) is pleased to announce that the Company’s largest shareholder and a key supplier to Tesla – China’s Sichuan Yahua Industrial Group (Yahua) – is planning to more than double its lithium hydroxide production capacity.Yahua announced this week that it will invest to increase the output of its Yaan plant from 20,000tpa to 50,000tpa of battery-grade lithium hydroxide.Yahua and Tesla signed an agreement in December 2020 for Tesla to purchase US$630 million to US$880 million of battery-grade lithium hydroxide over a five-year period.A significant portion of Yahua’s lithium concentrate supply requirements for Yaan can be met by Core. Core and Yahua have signed a binding offtake agreement for Core to supply 75,000tpa (~10,000tpa LCE) of lithium spodumene concentrate. The Yahua offtake represents approximately 40% of Finniss’ proposed 175,000tpa production.Core is the most advanced new Australian lithium developer on the ASX and leading the supply of new global lithium production at a time when worldwide demand for this key battery component is again accelerating.