A deal that would have sold lithium from Australia’s Core Lithium to electric car giant Tesla has been quietly shelved.
“We thank Tesla for taking the time to negotiate with Core and look forward to maintaining an open and ongoing dialogue.pdf) October 27.
The CEO says the high price of lithium means the company is “well positioned” to capitalize on international demand and the current shortage of battery-grade lithium spodumene concentrate. I was optimistic.
Meanwhile, South Australia’s Core Lithium operates the Finniss Project in the Northern Territory. About 80% of the mine’s output is allocated to Chinese lithium companies Ganfeng and Yahua.
China remains a major processor of raw lithium despite holding only 10% of the world’s supply.
The global lithium market has highs and lows
Meanwhile, a future deal with Tesla was due to be finalized on October 26, 2022 (according to a March announcement), but the likely factor was simply that Tesla CEO Elon Musk criticized It may have been the high cost of lithium that has been around.
Lithium prices have soared from US$17,000 per tonne in 2021 to more than US$78,000 at the peak of this year.
Price volatility is pushing governments, companies and major automakers to net zero to ensure supplies of lithium and other critical minerals needed for a range of rechargeable batteries that will form the basis of a decarbonized society. It is occurring in response to global pressure on
In June, Detroit auto giant Ford partnered with Western Australia-based Liontown Resources to supply 75,000 dry metric tons of spodumene concentrate in the first year, 125,000 tons in the second year, and annual production in the second year. A multi-year contract for 150,000 tonnes has been signed. 3 years left.
The deal follows South Korea’s LG Energy Solutions and Tesla, who signed a five-year contract for 100,000 tons of lithium concentrate in the first year and 150,000 tons each year thereafter.
However, the United Nations has raised environmental concerns about important mineral mining activities, including exposure to toxic gases, especially in African countries where child labor is prevalent. Additionally, South America, where the country’s “lithium triangle” is located, has raised concerns about water use, especially in water-scarce areas (lithium mining requires large amounts of water resources).