Core Lithium Ltd., Adelaide, Australia, (ASX: CXO) is pleased to inform that its share price has surged today on news that the Company’s largest shareholder and offtake partner, China’s Sichuan Yahua Industrial Group (Yahua), has signed a deal to supply battery-grade lithium hydroxide to US electric vehicle manufacturer Tesla over the next five years.
HIGHLIGHTS
· Core’s largest shareholder and lithium offtake partner Yahua signs supply deal with Tesla
· Core’s share price doubles on news
· Yahua expected to use Core’s lithium concentrate from the Finniss Lithium Project, under its existing offtake agreement, to produce lithium for Tesla and other customers.
Under this agreement, it is expected that Core’s near construction-ready Finniss Lithium Project in the Northern Territory will be a key source of spodumene concentrate for Yahua to fulfil its mandate with Tesla and other customers in the future. Yahua currently holds a three-year, 75,000 tonnes per annum offtake agreement with Core.
Following the Yahua-Tesla announcement, Core’s share price has doubled in value to 18.5 cents per share as of midday today AEST – Australian Eastern Standard Time. This has led to a query from the ASX-Australian Securities Exchange, with the Company’s response provided in the link below.
The Finniss Lithium Project is Australia’s most advanced new lithium project on the ASX and places Core Lithium at the front of the line of new global lithium production. The Project is near shovel-ready and approved by Government to commence construction, mining and production of high-quality lithium concentrate.
Finniss is also one of the most capital efficient lithium projects in Australia and has arguably the best logistics chain to markets of any Australian lithium project.
The Project lies within 25km of port, power station, gas, rail and one hour by sealed road to workforce accommodated in Darwin and importantly to Darwin Port – Australia’s nearest port to Asia.
