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published in Blogs
Jan 03, 2023
Piedmont Lithium (PLL, $41.63) and Tesla (TSLA, $106.29) amend deal

Piedmont Lithium (PLL, $41.63) and Tesla (TSLA, $106.29) amend deal

Piedmont Lithium and electric-vehicle company Tesla have amended an agreement that will allow a ramping up of domestic supply of the metal to Tesla for its EV batteries.

Under the amended agreement, Piedmont will deliver around 125,000 metric tons of spodumene concentrate to Tesla from the second half of 2023 through the end of 2025. Instead of locked in pricing deal in prior agreements, , Piedmont’s deal with Tesla is based on a floating mechanism based on market prices.

The prior deal between Piedmont and Tesla was announced more than two years ago, when lithium prices were at a record lows amidst pandemic-induced weakness in demand for EVs. But the metal's prices have surged +1,200% over the past two years as supply has struggled to meet soaring demand for electric vehicle batteries.

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