• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 11 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
The Race for Natural Hydrogen Is Heating Up

The Race for Natural Hydrogen Is Heating Up

Natural hydrogen presents a promising…

Tesla’s Rough Start To The Year Just Got Worse As Lithium Supplier Changes Deal

Tesla (NASDAQ:TSLA) stock fell sharply on Tuesday, to $106.06 by the afternoon hours, as the EV maker’s fourth-quarter delivery figures released on Tuesday disappointed—but a new gut punch was also delivered on Tuesday when one of Tesla’s lithium suppliers changed the terms of the deal.

Piedmont Lithium has contracted to supply Tesla with 125,000 tons of lithium concentrate this year from North American Lithium. But unlike previous deals where the price of lithium is fixed, the new deal for Tesla’s lithium will float based on market prices at the time of each shipment, according to a Tuesday press release from Piedmont.

The contract will begin in the second half of this year, and runs through the end of 2025. The contract will also have an option to renew the contract for three years.

“The electric vehicle and critical battery materials landscape has changed significantly since 2020 and this agreement reflects the importance of – and growing demand for – a North American lithium supply chain. This agreement helps to ensure that these critical resources from Quebec remain in North America and support the mission of the Inflation Reduction Act to bolster the U.S. supply chain, the clean energy economy, and global decarbonization,” Piedmont Lithium President and CEO Keith Phillips said.

North American Lithium is set to restart production in the first half of this year, with first commercial shipments slated for Q3 2023.

Lithium is a critical component of Tesla’s lithium-ion batteries. 

Tesla’s Model Y is single-handedly responsible for more than 10% of global EV lithium consumption as of Q3 2022, according to Adamas Intelligence data.

Tesla delivered 1.31 EVs in 2022—a 40% increase over 2021. Fourth quarter deliveries fell shy of analyst expectations at 405,278. Analysts had anticipated 427,000 deliveries for the quarter.

ADVERTISEMENT

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News