Replies to post #75117 on Tesla Inc (TSLA)

[Moonlazer]

Supply and demand basics. The supply is there and no shortages have yet to be announced. Contracts are secured for a couple more years already. Supplier in Pennsylvania has already sealed that deal on contract renewal. Old news.

[Moonlazer]

Announced on this apps news section Jan 3rd. It was this article that I decided to declare the bottom at 102pps

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Piedmont Lithium Strikes New Tesla Supply Deal

Source: Dow Jones News

By Will Feuer

Piedmont Lithium Inc. said it has amended its supply deal with Tesla Inc. to supply the electric-vehicle maker with spodumene concentrate through the end of 2025.

Spodumene, the mineral that contains lithium, is a key input for the production of lithium-ion batteries for electric vehicles.

The deal with Tesla includes an option to renew for an additional three years. Under the deal, Piedmont has agreed to deliver about 125,000 metric tons of spodumene concentrate, also called SC6, to Tesla beginning in the second half of 2023 through the end of 2025.

Pricing will be determined by a formula-based mechanism linked to average market prices for lithium hydroxide monohydrate throughout the term of the deal. The pricing received by Piedmont will be determined by market prices at the time of each shipment, the company said.

Piedmont said it expects to source SC6 from the North American Lithium Project in Quebec.

"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 Chief Executive Keith Phillips said.

Shares of Piedmont Lithium rose almost 7%, to $47.03, in premarket trading.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

January 03, 2023 07:37 ET (12:37 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

[la-tsla-fan]

Vort: Just two issues with your post:

1. Remember the humongous water shortage in Southern California in the 1930s? We found a way then, and, by golly, we/ll find one now!

2. Already, the problems with lithium mining and extraction are recognized, especially the need for fresh water. According to one source, extraction of one ton of lithium requires 500,000 gallons of water! Disposal of large quantities of polluted water usually results in polluting remaining fresh water supplies. However, I have NO DOUBT that we WILL find more environmentally-friendly ways to obtain lithium. SIR ELON is already working on the problem: See. https://chargedevs.com/newswire/tesla-develops-new-cost-slashing-lithium-extraction-process/

3. What if we could make EV batteries without lithium? That idea has been studied for several years - see https://www.thomasnet.com/insights/7-lithium-battery-alternatives/
The most likely replacement for lithium is magnesium. The problem with using magnesium seems to be of a kind that requires engineering and financial commitments, the kind that AMERICA specializes in!