- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Australia's Core Lithium Rises on Tesla Supply Deal News
Core is fully funded and set to deliver first production of lithium concentrate from the project in Q4 2022.
Australia’s Core Lithium (ASX:CXO) has signed a lithium supply deal with electric vehicle maker Tesla (NASDAQ:TSLA) as demand for the raw material continues to increase.
Shares of the Northern Territory-focused company jumped almost 15 percent following the news, from a closing price of AU$0.83 on Tuesday (March 1) to AU$0.95 on Wednesday (March 2).
The legally binding term sheet with Elon Musk’s Tesla will see Core Lithium supply the car company with up to 110,000 tonnes of lithium oxide spodumene concentrate from its Finniss lithium project over four years.
Core will begin supplying Tesla in the second half of 2023. Pricing for the material will be referenced to the market price for spodumene concentrate, but will be subject to a price floor and ceiling.
Construction at Finniss, located near Darwin, kicked off last year after a final investment decision in September. Core is fully funded and set to deliver first output of lithium concentrate from the project in Q4 2022.
A definitive feasibility study published in 2021 for Finnis shows average production of 175,000 tonnes per year of high-quality lithium concentrate at a C1 operation expenditure of US$364 per tonne; startup capital costs are set at AU$89 million with a "rapid" payback period of two years.
In addition to its Tesla deal, Core Lithium has four year offtake agreements with Ganfeng (SZSE:002460), one of the world’s largest lithium producers by production capacity, and Yahua, a key lithium supplier to Tesla.
US-based Tesla has also agreed to potentially provide additional support to Core with its plans to develop lithium chemical processing capacity in the Northern Territory.
Aside from its deal with Core, Tesla has a deal for lithium with junior Liontown Resources (ASX:LTR), plus agreements with BHP (ASX:BHP,LSE:BHP,NYSE:BHP) for nickel and Syrah Resources (ASX:SYR) for graphite.
Many analysts believe 2022 will see lithium demand continue to outpace supply, and as a top lithium-producing country, Australia is well positioned to see gains from the energy transition.
Speaking with the Investing News Network earlier this year, Jessica Amir, Australian market strategist at Saxo, said lithium is a key metal to watch in 2022.
“The lithium price is tipped to continue to rise to another record,” she said, adding that major lithium producers are optimistic about the space due to a lack of mining investment and rising demand.
As of market close on Wednesday, shares of Core Lithium were trading at AU$1.64.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Priscila Barrera, currently hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
- Top Australian Lithium Stocks | Biggest by Market Cap | INN ... ›
- How to Play the Battery Metals Market in Australia | INN - Investing ... ›
- Liontown Jumps After Striking Lithium Supply Deal with Tesla ... ›
The Beginner’s Guide to Investing in Lithium(Australia Edition)
Ready to invest in lithium? Our beginner's guide makes it simple to get started.
Download your investing guide today.
Learn About Exciting Investing Opportunities in the Lithium Sector
Your Newsletter Preferences
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.
Priscila is originally from Buenos Aires, Argentina, where she earned a BA in Communications at Universidad de San Andres. She moved to Vancouver for the first time in 2010 and fell in love with the city. A few years after she went to London, UK, to study a MA in Journalism at Kingston University and came back in 2016. She enjoys reading, drinking coffee and travelling.
Learn about our editorial policies.