Australian lithium miner Core Lithium and Tesla reach an agreement to supply 110000 tons of spodumene concentrate over the next four years

Australian lithium miner Core Lithium (CXOXF.US on Wednesday announced a supply agreement with TSLA.US to supply up to 110000 tonnes of spodumene concentrate to Tesla within four years. U. S. stocks closed up more than 16% on Tuesday, boosted by the news.

Core Lithium said that the supply of spodumene concentrate to Tesla from Finniss Project, its flagship project in Australia's Northern Territory, to Tesla is expected to begin in the second half of 2023.

The supply deal reflects an exponential increase in electric vehicle sales and a sharp rise in demand for battery metals such as lithium, nickel and cobalt as the world shifts to a more sustainable future.

In addition to Core Lithium, Australian lithium miner Liontown Resources and graphite supplier Syrah Resources have reached similar agreements with Tesla in the past few months. At present, automakers around the world are competing to ensure the supply of parts used to make electric cars.