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Core Lithium’s managing director Stephen Biggins (left) with Minister for Mining and Industry Nicole Manison (right) as they announced the FID. Image: Core Lithium.

Core Lithium and Tesla have executed a legally binding term sheet for the supply of lithium spodumene concentrate from Core’s Finniss lithium project in the Northern Territory.

Core will supply up to 110,000 tonnes of lithium spodumene concentrate from the project over a four-year term, with pricing subject to the product’s market value to a minimum and maximum point.

Core Lithium managing director Stephen Biggins said the deal adds to a host of previously announced offtake agreements.

“Subject to execution of a definitive agreement, Core’s supply to Tesla is scheduled to commence in the second half of 2023 and will cease on the date that is four years after commencement of supply or until a total of up to 110,000 dry metric tonnes has been delivered,” he said.

“Core Lithium is thrilled to have reached this agreement with Tesla and look forward to further growing this relationship in the years to come.

“Tesla is a world leader in electric vehicles and its investment in offtake and interest in our expansion plans for downstream processing are very encouraging.”

In October last year, Core Lithium began constructing its Finniss lithium project and aims to become Australia’s only lithium miner to start production in 2022.

The construction began in the wake of several key announcements such as a mining services contract to Lucas Total Contract Solutions, a process plant EPC contract to Primero Group, and a final investment decision (FID) in September.

Biggins said he looked forward to an exciting year for Core and for Australian lithium production.

About 80 per cent of Finniss output over the first four years has been secured in offtake agreements with Ganfeng and Yahua, who both play major roles in the global lithium supply chain.