Piedmont Lithum stock jumps 9% premarket on news of new lithium delivery deal with Tesla


Piedmont Lithium Inc. PLL, +0.94% said Tuesday it has amended its agreement with Tesla Inc. to supply the electric vehicle maker with spodumene concentrate, or SC6, from North American Lithium. Piedmont will now deliver about 125,000 metric tons of SC6 to Tesla, starting in the second half of 2023 through the end of 2025. The SC6 pricing will be determined by a formula-based mechanism linked to average market prices for lithium hydroxide monohydrate throughout the term of the agreement, the company said in a statement. The pair have agreed to binding terms for three years and included an option to renew for another three years. “The electric vehicle and critical battery materials landscape has changed significantly since 2020 and this agreement reflects the importance of — and growing demand for — a North American lithium supply chain,” said Piedmont Lithium President and CEO Keith Phillips in a statement. The SC6 will be sourced from Sayona Quebec, with which Piedmont has an agreement to purchase the greater of 113,000 metric tons per year or 50% of SC6 production. Piedmont stock jumped 9% in premarket trade, but have fallen 19% in the last 12 months, while the S&P 500 SPX, -0.25% has fallen 20%.

This article was originally published by Marketwatch.com. Read the original article here.

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