Finally @PiedmontLithium deal to supply @Tesla spodumene ore (once in production in North Carolina) is allowed to be released.
No idea why ASX delayed this.
Should give a clearer intention to Tesla’s lithium plans. More from @Benchmarkmin finance.yahoo.com/news/australia…
Note for Tesla’s followers new to lithium this is spodumene not clay
This Tesla / lithium news should also be more positive news for producers of spodumene in Australia.
Tesla’s spodumene direction means
1/ they will need to source from Australia as a min to meet 2022 deadlines
2/ for additional longer term volume to Piedmont
For clarity, Piedmont is not in production and is aiming to start to meet Tesla’s deadlines for the Austin Terafactory of 2022/2023.
Still needs funding to get into production. Tesla’s off-take is for ~30% of its total 160,000 tpa spodumene (Lithium feedstock) output.
We are in a different world to when Tesla announces deals with previous lithium developers in 2015 (Pure Energy and Bacanora) that never happened.
Tesla’s proven itself. Gigafactory is at capacity. EVs are widespread (comparatively). Lithium ion battery market is 4x bigger.
Another reasons why the US and Tesla needs to start building a lithium ion battery supply chain /Economy is China’s dominance of each stage. #EV
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