Tesla has issued Core Lithium a notice, warning about potential legal action after the Australian lithium producer failed to materialise a 2022 supply agreement by the set deadline.
The two companies failed to reach a deal by 26 October 2022, as decided earlier, and now Tesla is looking to take “all available legal remedies” unless the parties mutually resolve the matter, Core Lithium said in a presentation on 16 August.
The notice of a potential legal claim is related to a binding term sheet the companies signed in March last year to negotiate the terms of a supply agreement under which Tesla would have received spodumene, a lithium-rich mineral.
The lithium producer was negotiating with Tesla to supply 110,000t of spodumene from its Finniss project in Australia’s Northern Territory.
