Core Lithium (ASX:CXO) extends offtake deadline with Tesla

• Core Lithium (CXO) extends the termination date of its binding term sheet agreement to supply Tesla with lithium spodumene concentrate to October 26, 2022
• The extension buys the company more time to complete negotiations with the electric vehicle behemoth for a definitive product purchase agreement
• Under the proposed four-year deal, Core could supply Tesla with up to 110,000 tonnes of concentrate from its developing Finniss lithium project in the Northern Territory
• Shares in Core Lithium are down 3.6 per cent to $1.34 at 11:34 am AEST

Core Lithium (CXO) has extended the termination date of its binding term sheet agreement to supply Tesla with lithium spodumene concentrate to October 26, 2022.

The two-month extension to the binding term sheet buys Core more time to complete negotiations with the electric vehicle behemoth for a definitive product purchase agreement.

Under the proposed four-year deal, Core could supply Tesla with up to 110,000 tonnes of concentrate from its developing Finniss lithium project in the Northern Territory.

The Finnis project has been awarded major project status by the Australian government as one of the most capital-efficient lithium projects in the country.

Core Lithium said the project would provide the world with high-grade and high-quality lithium suitable for lithium batteries used to power electric vehicles and renewable energy storage.

Also, the company previously said it was fully funded to develop the project and construction has already started, with first lithium concentrate production scheduled for the fourth quarter of this year.

Tesla has reportedly agreed to provide additional support to Core to assist with the project expansion plan, as well as to incorporate Core’s lithium chemical product into Tesla’s supply chain, subject to the execution of a definitive agreement.

Shares in Core Lithium were down 3.6 per cent to $1.34 at 11:34 am AEST.