Tesla warns Core Lithium of potential lawsuit over failed deal
2023.08.17 13:33
© Reuters. FILE PHOTO: The logo of car manufacturer Tesla is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann/File Photo
(Reuters) -Core Lithium has received a notice from electric-vehicle maker Tesla (NASDAQ:) over a 2022 supply agreement that failed to materialize within the set deadline, the Australian miner said.
The two companies failed to reach a deal by Oct. 26, 2022, as decided earlier, and now Tesla would take “all available legal remedies” unless the parties mutually resolve the matter, Core lithium said in a presentation on Wednesday.
The notice of a potential legal claim is related to a binding term sheet the companies signed in March last year to negotiate the terms of a supply agreement under which Elon Musk-led Tesla would have received spodumene, a lithium-rich mineral.
Tesla and Core Lithium did not respond to Reuters’ requests for comments.
The lithium producer was negotiating with Tesla to supply 110,000 tonnes of spodumene from its Finniss project in Australia’s Northern Territory.
Rising demand for electric vehicles around the world is encouraging automakers ranging from General Motors (NYSE:) to Stellantis to Ford to step up efforts to secure raw materials needed for making batteries.
Tesla in 2022 signed a five-year lithium-supply deal with Australia’s Liontown Resources to buy 100,000 dry metric tonnes (DMT) of the concentrate in the first year starting 2024, increasing to 150,000 DMT per year in subsequent years.
