Australia is growing its lithium mining and Tesla is intent on exploiting that fact. Their latest contract with Kidman Resources will see them supply Tesla with battery material lithium hydroxide for their electric cars for 3 years initially.
The deal comes in the wake of Kidman Resources establishing a new lithium processing plant in Kwinana, Western Australia, with its joint venture partner SQM from Chile. Kidman, which expects the processing plant to come on line in 2021, says they are also in talks with other “globally significant” parties seeking refined lithium, Reuters reports.
For now the deal with Tesla is for an initial three-year term on a “fixed-price take-or-pay basis” from the first product delivery. It also features two three-year term options. Further details have not been disclosed.
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