Core Lithium and Tesla enter into binding term sheet for the supply of lithium

Australia-based Core Lithium has entered into a legally binding Term Sheet with Tesla for the supply of up to 110,000 tonnes of Li2O spodumene concentrate from the Finniss Lithium Project over a term of 4 years, with pricing referenced to the market price for spodumene concentrate, subject to a price floor and ceiling.

This deal follows Core Lithium’s Board making a Final Investment Decision to commence development of the company’s wholly owned Finniss Project, located near Darwin in the Northern Territory (NT). The company is fully funded to deliver the Finniss Project, which has started construction, through to first lithium concentrate production scheduled for Q4 2022.

The term sheet with Tesla is subject to the parties completing negotiations and execution of a definitive product purchase agreement by 27 August 2022, which is to provide for a supply commencement date before 31 July 2023 (subject to extension by mutual agreement).

The Finniss Project lies within one of the most prospective areas for lithium in Australia’s NT—the Bynoe Pegmatite Field—and covers more than 500 km2 of granted tenements.

Tesla has agreed, subject to execution of a definitive agreement, to provide additional support to Core to assist with the successful completion of its Stage 3 Expansion and the incorporation of Core’s lithium chemical product into Tesla’s supply chain.

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