Tesla Signs Lithium Supply Agreement With Bacanora Minerals

Late Thursday night, Bacanora Minerals (TSXV:BCN,LSE:BCN) and joint venture partner Rare Earth Minerals Plc (LSE:REM) announced a conditional lithium hydroxide supply agreement with Tesla Motors (NASDAQ:TSLA).
The deal marks the first much-anticipated raw material supply agreement with the electric vehicle manufacturer.
Shares of Bacanora shot up 48 percent to $1.90 on the TSXV on Friday, and were up 26 percent to GBP88.50 in London. Shares of Rare Earth Minerals were up 20 percent in London to GBP1.08 as of 3:22 p.m. BST
Bacanora and Rare Earth Minerals hold the Sonora lithium project in Mexico, a mineral-rich, lithium-bearing clay deposit which is still being developed. The partners estimate that Sonora will have an initial production capacity of 35,000 tonnes of lithium compounds per year, ramping up to 50,000 tonnes.