By Will Feuer

 

Piedmont Lithium Inc. said it has amended its supply deal with Tesla Inc. to supply the electric-vehicle maker with spodumene concentrate through the end of 2025.

Spodumene, the mineral that contains lithium, is a key input for the production of lithium-ion batteries for electric vehicles.

The deal with Tesla includes an option to renew for an additional three years. Under the deal, Piedmont has agreed to deliver about 125,000 metric tons of spodumene concentrate, also called SC6, to Tesla beginning in the second half of 2023 through the end of 2025.

Pricing will be determined by a formula-based mechanism linked to average market prices for lithium hydroxide monohydrate throughout the term of the deal. The pricing received by Piedmont will be determined by market prices at the time of each shipment, the company said.

Piedmont said it expects to source SC6 from the North American Lithium Project in Quebec.

"This agreement helps to ensure that these critical resources from Quebec remain in North America and support the mission of the Inflation Reduction Act to bolster the U.S. supply chain, the clean energy economy, and global decarbonization," Piedmont Lithium Chief Executive Keith Phillips said.

Shares of Piedmont Lithium rose almost 7%, to $47.03, in premarket trading.

 

Write to Will Feuer at Will.Feuer@wsj.com

 

(END) Dow Jones Newswires

January 03, 2023 07:37 ET (12:37 GMT)

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