Piedmont Lithium Ltd. (NASDAQ: PLL) has announced a binding agreement with Tesla Inc. (NASDAQ: TSLA) to supply spodumene (SC6) concentrate from Piedmont’s North Carolina deposit. Shares of Piedmont nearly tripled on the news.
This deal is for an initial five-year term on a fixed-price binding purchase commitment from the delivery of first product, and it may be extended by mutual agreement for a second five-year term. The agreement covers a fixed commitment representing about one-third of Piedmont’s planned SC6 production of 160,000 tonnes per annum for the initial five-year term, as well as an additional quantity to be delivered at Tesla’s option.
The SC6 sales are expected to generate between 10% and 20% of Piedmont’s total revenues from its proposed integrated mine-to-hydroxide project for the initial five-year term. The agreement is conditioned on Tesla and Piedmont agreeing to a start date for spodumene concentrate deliveries between July 2022 and July 2023, based on the development schedules of both parties.
Management was quick to note that the agreement highlights the strategic importance of Piedmont’s unique American spodumene deposit and confirms the trend toward spodumene as the preferred feedstock for the lithium hydroxide required in high-nickel batteries.
Also, Piedmont will simultaneously advance its plans to produce lithium hydroxide in North Carolina, using a combination of internally produced spodumene concentrate, as well as material sourced from other producers around the world.
Piedmont Lithium stock traded up about 178% on Monday, at $30.60 in a 52-week range of $4.00 to $43.99. The consensus price target is $20.00.
Tesla stock was up about 3% to $418.23, with a 52-week range of $44.86 to $502.49. The consensus price target is $314.68.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
