Tesla signed a lithium ore contract with an Australian company with a supply period of 5 years

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Australian lithium miner Piedmont Lithium (Piedmont Lithium) confirmed on Monday that the company has signed a cooperation agreement with electric vehicle manufacturer Tesla to supply high-purity lithium ore through a mine in North Carolina, USA. The supply period is five years.

Piedmont Lithium said in a statement that in accordance with the agreement, Tesla will purchase about one-third of its planned annual output of spodumene concentrate at a fixed price in the first five years of cooperation (the company’s annual output is 50,000 tons). It can produce 160,000 tons of spodumene concentrate) . After the contract expires, the two parties can choose whether to renew the five-year agreement. The scheduled delivery time will start from July 2022 to July 2023.

Piedmont Lithium confirmed to the Australian Securities Exchange (ASX) that an employee “unintentionally” announced the transaction on the company’s website on September 23 before releasing the latest market news through the exchange. Since then, the company quickly deleted the message, but it has been reprinted by other media.

However, before the announcement of this transaction information on the company’s website, Piedmont Lithium had already submitted an announcement to ASX, although it had not yet received confirmation of whether the latter could release the news to the market. Under normal circumstances, the exchange will only release the message after reviewing its authenticity.

ASX is currently investigating the details of the matter. Piedmont Liye made an independent announcement before the ASX announcement, which violated the listing rules, which may be interpreted as an “administrative error.”

After the latest news was released, Piedmont Lithium, which is listed on the New York Stock Exchange and the Australian Stock Exchange, resumed trading in Sydney. Its share price has soared by 80%, and the current trading price is 0.27 Australian dollars.

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