Sign up Australia
Proactive Investors - Run By Investors For Investors

Kidman Resources continues to ride lithium wave by signing offtake agreement with Tesla

Electric vehicle maker signs agreement to secure lithium hydroxide from proposed new refinery in Western Australia.
Tesla sign and EV
The company is also in discussions with other interested offtake parties

Kidman Resources Ltd (ASX:KDR) continues to ride high on the lithium wave and the latest crest is the signing of a lithium hydroxide offtake agreement with electric vehicle giant Tesla.

The binding agreement is for an initial term of three years on a fixed-price take-or-pay basis from the delivery of first product and contains two three-year term options.

Company has integrated lithium strategy

It further validates Kidman’s strategy of being an integrated manufacturer of battery-grade refined lithium.

Investors have demonstrated their support of the strategy with shares up 8% intra-day to $2.34 on volume of more than 9 million.

Recent news flow has seen Kidman reach a 12-month high of $2.37 earlier this month.

READ: Kidman Resources selects site at Kwinana for proposed lithium refinery

The Tesla agreement follows Western Australia Lithium (WAL), Kidman’s 50:50 joint venture with Sociedad Quimica y Minera de Chile (SQM), signing an option to lease land for a proposed lithium refinery.

WAL has entered into an exclusive option to lease a premier site in the Kwinana Strategic Industrial Area in Western Australia.

The Tesla agreement equates to less than 25% of Kidman’s portion of initial nameplate production for the first three years from the refinery.

Others seek refined lithium offtake

In addition to this agreement, Kidman is in discussions with other strategic, globally significant parties also seeking refined lithium offtake.

Expressions of interest to date have materially exceeded Kidman’s portion of initial refinery nameplate production.

Kidman is targeting to enter into a limited number of offtake agreements while leaving a minority portion of future supply uncontracted.

View full KDR profile View Profile

Kidman Resources Ltd Timeline

September 11 2017

Related Articles

February 06 2018
Coro Mining is on the move in Chile, with feasibility work nearing completion and new ground to work on
project area
July 12 2018
Latin has over 263,000 hectares of exploration concessions in the lithium pegmatite districts of Argentina.
November 09 2018
With money in the bank and good results coming in, Lucky looks well positioned to make further progress

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use