Tesla, Inc (formerly Tesla Motors, Inc) is one of the designing, developing, manufacturing, and selling fully electric vehicles, and energy storage systems. NASDAQ: TSLA at https://www.webull.com/quote/nasdaq-tsla installs, operates, and maintains solar and energy storage products. The company is operating through two segments such as Automotive, and Energy generation and storage. The Energy generation and storage segment are including the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or the sale of electricity is generated solar energy systems to customers. This company is producing and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It is offering Model 3, a sedan designed for the mass market. This is developing energy storage products for use in homes, commercial facilities, and utility sites.
- 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 the 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.