Australia's Piedmont signs lithium ore supply deal with Tesla, shares surge

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(Reuters) – Piedmont Lithium <PLL.AX> on Monday said it signed a five-year deal with Tesla Inc <TSLA.O> to supply high-purity lithium ore mineral to the U.S. electric carmaker, prompting an 83% surge in the Australian lithium miner’s shares.
The initial five-year agreement implies that Piedmont will supply about a third of its planned 160,000-tonnes-per-year spodumene concentrate produce from its deposits in North Carolina. Both companies have an option to extend the deal for another five years.
Shares of the Australian miner touched their highest since May 2007.
The deal comes on the heels of Tesla’s “Battery Day” presentation last week when Chief Executive Elon Musk shared his vision of novel, proprietary Tesla batteries, following which Tesla stock lost more than $30 billion in market value.
Piedmont said in a statement that the agreement …

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