The company will supply lithium ore to Tesla, in a deal that could last a decade
- shares

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.