- ⚖️ Tesla threatens Core Lithium with potential lawsuit over failure to execute a supply agreement.
- 📜 Core received a notification from Tesla about a potential legal claim related to a binding term sheet.
- 🤝 Agreement was for the supply of lithium spodumene concentrate from Core’s Finniss Lithium Project.
- ⏰ Deadline to execute the agreement passed without a definitive agreement after extended negotiations.
- 🛠️ Tesla and Core will attempt resolution, but legal actions may be taken if issues persist.
- 🚗 Core was negotiating to supply 110,000 tonnes of lithium to Tesla.
- 🔌 Lithium is in high demand for EV production, with various automakers seeking supply agreements.
- 🏭 Tesla is also investing in its own refinery in Texas for lithium production.
Tesla has threatened Core Lithium with a potential lawsuit pertaining to a failure to execute an agreement the two companies had over an agreement to supply the automaker with lithium spodumene concentrate from Core’s Finniss Lithium Project.
Core said in an Equity Raise Presentation yesterday that it had received a notification from Tesla of a potential legal claim regarding the binding terms it entered in March 2022:
“Core has received a notification from Tesla of a potential legal claim relating to a binding Term Sheet entered between the parties on 1 March 2022, which formed the basis for negotiating the terms of an offtake agreement for the supply of lithium spodumene concentrate from Core’s Finniss Lithium Project.”
Core said in the presentation that the deadline to execute the agreement was October 26, “but the deadline passed without a definitive agreement being executed after extended negotiations,” the company said.
Tesla and Core will attempt to iron out the issues on their own. If not, legal processes will be taken.:
“Core has received a notice concerning the parties’ failure to execute a definitive agreement and that Tesla intends to avail itself of all available legal remedies to the extent the parties are unable to mutually resolve this matter without litigation. Should those efforts fail, each party intends to avail itself of all legal and equitable remedies.”
Core was negotiating with Tesla to supply 110,000 tonnes of lithium, according to Reuters.
Lithium has become one of the most sought-after materials in the EV supply chain after an influx of automakers have signed on to build electric vehicles.
Tesla has signed several deals, including with companies like Piedmont Lithium, but is also launching its own refinery in Texas.