Core Lithium (ASX:CXO) and Tesla are again in news today; here's why

Highlights:

• Australian lithium producer Core Lithium has extended the lithium offtake deal with Tesla till 26 October 2022.
• As part of the deal, Core Lithium will be supplying batches of high-grade lithium to Tesla for four years.
• Core Lithium is getting popular in Australia for building country’s newest and most advanced lithium project, the Finniss Project.

Australia-based lithium producer, Core Lithium Ltd (ASX: CXO), on Monday (29 August 2022), shared that it is has agreed with Tesla, Inc. to extend the lithium offtake agreement.

As per the ASX announcement, both the companies have mutually agreed to extend  this offtake term sheet till  26 October 2022.

As per Core Lithium, the extension will allow both the companies  to finish discussions for the definitive full form binding offtake agreement.

However, at 10:15 AM AEST, the shares of Core Lithium were spotted trading 3.237% lower at AU$1.345 apiece on ASX.

More about Tesla-Core Lithium deal:

• Under the Offtake Term Sheet signed between electric vehicle maker Tesla and Core, the latter will be supplying up to 110,000 dry metric tonnes of lithium spodumene concentrate to the car maker.
• This high-grade lithium spodumene will be produced at Core's Finnis Lithium Project expected to start in 2023.
• Core Lithium will be supplying this much of spodumene concentrate to Tesla in a time period of four years. In return, Tesla will also support Core in development of lithium chemical processing capacity.

About Core Lithium:

Core Lithium is building a state-of-the-art lithium project in Australia’s Northern Territory. This Finniss Project has been awarded Major Project Status by the Australian government.. Core Lithium boasts that it has the best logistics chain to markets as compared to any other Australian lithium project.

The Finniss Project will manufacture high-grade and top quality lithium which would be used in batteries of electric vehicles.