Tesla Graphite - Deal or No Deal

According to one of the two companies involved there has been no agreement OR are they still in discussion?

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Tesla Motors, Inc.’s (TSLA - Analyst Report) supposed long-term agreement with Bacanora Minerals and U.S. Rare Earth Minerals, Inc. to purchase lithium hydroxide has been denied by U.S. Rare Earth Minerals. The Nevada-based company has categorically stated that it did not ink any agreement with Tesla. The company further informed that it is not currently involved in the mining or sale of lithium; however, it is seeking options for it. At present, U.S. Rare Earth Minerals mainly sells EXCELERITE(R), a brand that covers natural minerals for animal consumption as well as agricultural products which contain lithium.

Recently, media reports emerged saying that Bacanora Minerals and U.S. Rare Earth Minerals have entered into an agreement with Tesla to sell lithium hydroxide extracted from their Sonora lithium project mine in Northern Mexico, subject to certain conditions. The lithium hydroxide was supposed to be used for the manufacture of lithium-ion batteries in Tesla’s Gigafactory.

The conditions for the supposed agreement included supplying the quantity of lithium required by Tesla at the speed it needs. Another requirement was that Bacanora Minerals and U.S. Rare Earth Minerals will raise capital for the project, as well as build the mine and a lithium processing facility.

Considering that U.S. Rare Earth Minerals has specifically denied an agreement with Tesla, these reports seem to have stemmed from misinformation. However, based on the details leaked by the reports, it is possible that the companies are in talks, with no formal agreement reached yet.

- See more at: http://www.zacks.com/stock/news/188...y-us-rare-earth-minerals#sthash.t1NREvEi.dpuf

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