Core Lithium Ltd (ASX:CXO) has come to a mutual agreement with electric car giant Telsa Inc. to extend the termination date for its binding offtake term sheet to October 26, 2022.
The agreement gives Tesla and Core the opportunity to finalise negotiations for the definitive full form binding offtake agreement, which would see Core supply Tesla with up to 110,000 dry metric tonnes of lithium spodumene concentrate produced at Core's Finnis Lithium Project near Darwin.
This offtake is expected to start in 2023.
Busy month for Core
In the last four weeks, Core has presented plenty of news for investors to think about, including the start of a reverse circulation (RC) drilling campaign of more than 40,000 metres of greenfields and brownfields target areas at Finnis and the appointment of resources sector veteran Gareth Manderson as CEO of the company.
Core is building Finnis, described as Australia's newest and most advanced lithium project on the ASX, in the Northern Territory.
Finnis has been awarded Major Project Status by the Australian Federal Government and is one of the most capital-efficient lithium projects with arguably the best logistics chain to markets of any Australian lithium project.
The Finnis Project is expected to provide the globe with high-grade and high-quality lithium suitable for lithium batteries used to power electric vehicles and renewable energy storage.