Core Lithium provides an update on a definitive product purchase agreement with Tesla.
Australian lithium miner, Core Lithium (Core or Company) (ASX: CXO), provides the following update on a definitive product purchase agreement with Tesla under the Binding Term Sheet (announced August 29 2022). The date of conclusion of the term sheet passed on October 26, 2022 without the agreement being concluded.
With the recent official opening of the Finniss lithium mine and the placement of subscribed shares to fund accelerated resource definition, Core is well positioned to take advantage of strong global demand and limited lithium supply.
The sale of 15,000 tonnes of direct ship ore (DSO) shows strong international demand for Finniss lithium. The DSO sale was offered on a CIF basis to several shortlisted participants active in the lithium-ion battery supply chain. Demand for DSO spodumene material has been strong, as evidenced by the price obtained.
DSO is expected to be shipped before the end of the year, ahead of production of spodumene concentrate in the first half of 2023. Agreements in place with Ganfeng and Yahua bring total concentrate sales under offtake contracts to around 80 % of the production of the Finniss Lithium project over the first four years of operation.
Global lithium demand is expected to remain strong for the foreseeable future and Core continues to receive strong interest in the Finniss Lithium Project’s lithium spodumene concentrate.
Mr Gareth MandersonCore’s CEO commented:
I would like to thank Tesla for the time it took to negotiate with Core and look forward to maintaining an open and ongoing dialogue.
“The recent sale of DSO, the expected start of lithium concentrate sales in the first half of 2023 and a rising lithium price environment indicate that Core Lithium is well positioned to capitalize on the strong demand and current shortage of spodumene concentrate. battery grade lithium available.”
About Core Lithium
Core Lithium is building Australia’s newest and most advanced lithium project on the ASX, the Finniss project in the Northern Territory. Finniss has received major project status from the Australian Federal Government, is one of the most capital efficient lithium projects and has arguably the best supply chain to market of any Australian lithium project.
The Finniss project will provide the world with high-quality lithium suitable for lithium batteries used to power electric vehicles and renewable energy storage
Direct debit update, October 27, 2022