Tesla warns of legal action against Core Lithium over failed supply agreement

Core Lithium has revealed that it has received a notice from Tesla regarding a supply agreement that failed to materialize as per the agreed timeline. The disagreement centers around a binding term sheet signed in March last year.

The proposed supply agreement was meant to facilitate Tesla’s access to spodumene, a lithium-rich mineral vital for electric vehicle (EV) battery production. The originally proposed deal would have seen Tesla receive 110,000 tonnes of spodumene from the Finniss project in Australia’s Northern Territory.

However, as we have previously reported, both parties found themselves unable to reach a mutually beneficial deal by the agreed-upon date of October 26, 2022.

According to a presentation by Core Lithium this week, Tesla has now indicated its intention to explore “all available legal remedies” unless the matter is resolved through mutual agreement. Neither company has provided detailed comments on the situation, according to Reuters, which first reported on the potential legal action.

While Tesla appears unable to come to terms with Core Lithium, they have been able to secure another potential lithium-supply deal with another Australian mining company, Liontown Resources, that is slated to begin next year.

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