Core Lithium gets notice from Tesla over failed deal

Core Lithium

17/08/2023 17:21

Aug 17 (Reuters) - Core Lithium  CXO.AX  has received a
notice from electric-vehicle maker Tesla  TSLA.O  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 to step up efforts to secure raw
materials needed for making batteries.
    
     

 (Reporting by Sourasis Bose in Bengaluru; Editing by Shinjini
Ganguli)
 ((Sourasis.Bose@thomsonreuters.com;))