Tesla Flags Potential Lawsuit to Core Lithium Over Deal Gone Sour
Tesla is waving a legal red flag to Australian mining company, Core Lithium. Why? A deal they hoped to seal last year didn’t pan out. Core Lithium shared last Wednesday that Tesla might pursue “all available legal remedies” if they don’t sort things out together.
The deal they were discussing? A supply agreement signed last March, where Tesla, led by Elon Musk, was set to get spodumene, an important ingredient for batteries, from Core Lithium.
Both companies had until October 26, 2022, to finalize things, but alas, no deal. This wasn’t just a small order, either. Core Lithium was talking big numbers – supplying 110,000 tonnes of spodumene from its Finniss project in Australia.
It’s no secret: electric vehicles are gaining traction. Big names like General Motors, Stellantis, and Ford are all on the hunt for essential battery materials.
In the midst of all this, Tesla reportedly inked a separate five-year deal with Australia’s Liontown Resources last year. They’re buying 100,000 dry metric tonnes of lithium concentrate starting 2024, and upping that number in the years that follow.
Neither Tesla nor Core Lithium have given their two cents on the matter when asked by Reuters. So, will the two giants sort it out, or will this head to court? Time will tell.
