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Australian mining company signs five-year deal with Tesla

Australian mining company Piedmont Lithium has signed a five-year supply deal with Tesla, with the option to extend the contract for an additional five years.


Around one third of Piedmont's high-grade lithium ore will be delivered to Tesla from the company's North Carolina mine, which produces around 160,000 tonnes each year.

Shares of the Australian miner surged on the back of the news, with the stock gaining 35 per cent over its closing price on Monday.

The deal comes on the heels of Tesla's 'Battery Day' announcement, where it unveiled the next-generation of battery cell which it claims will significantly increase the driving range of its electric cars.

Piedmont CEO Keith Phillips said: "We are excited to be working with Tesla, which represents the start of the first US domestic lithium supply chain".

"We will now accelerate our mine development to support Tesla's plans," he said.

Piedmont will begin supply of its lithium ore to Tesla from July 2022.

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Ben Zachariah

Ben Zachariah is an experienced writer and motoring journalist from Melbourne, having worked in the automotive industry for more than two decades. Ben began writing professionally more than 15 years ago and was previously an interstate truck driver. He completed his MBA in Finance in early 2021 and is considered an expert on classic car investment.

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