KIDMAN Resources has struck a binding offtake deal with Elon Musk’s Tesla for the supply of lithium hydroxide to be used in the batteries that power the company’s electric cars.
It is the first lithium supply deal an Australian company has struck with the US automaker widely regarded as being at the forefront of the electric vehicle revolution.
The initial three-year deal is based on a fixed-price, take-or-pay arrangement and has two three-year extension options.
The company did not reveal any other commercial terms, describing them as “strictly confidential”.
Kidman is in a 50/50 joint venture arrangement with Chilean chemicals giant SQM to develop its Mt Holland lithium project based on the Earl Grey deposit near Southern Cross.