Lithium producer Livent Corp announced Thursday its supply agreement with Tesla has been extended through to the end of 2021.
The announcement was included in the company’s Q3 2020 earnings report. Livent said that not only had their supply agreement been extended, but the deal also included a “commitment for higher volumes [of lithium] than in 2020.”
Also noted in the report was that the company continues to work with Tesla on a framework for a long-term supply agreement that goes beyond 2021.
To help boost lithium production, Livent will be partnering with The Pallinger Hurst Group to purchase the Nemaska lithium mine in Quebec’s James Bay region, 300 km northwest of Chibougamau.
The deal comes at a time when Tesla is not only seeing growing sales, but also beginning to venture into battery manufacturing themselves with their new 4680 cell.
CEO Elon Musk has raised several times the issue of the need for the raw materials that go into a battery. During the company’s Battery Day event in September, Musk said Tesla was working on securing the rights to mine lithium in Nevada.
