Electric vehicle OG Tesla needs lithium to help its production line...and it's picked its supplier.
Background: Liontown Resources is a Western Australia based mining company that specialises in lithium. And it seems to be a fave amongst big name tech companies.
What happened: The company recently signed a deal to supply lithium to LG, the electronics company. And now, it's just secured a 5-year deal with Tesla to supply 100,000 tonnes of lithium per year.
What else: After the Tesla partnership announcement, Liontown Resources' shares jumped over 15%. As we know, Elon has the Midas touch.
💡As we see the rapid growth of the electric vehicle market globally, we’re also seeing an increased demand for lithium.
💡It’s expected that by 2030, 35% of all cars will be electric vehicles.That's compared to only 2% of electric vehicles today.
💡And with supply of lithium becoming tight, it’s no surprise that Tesla is keen to lock in suppliers for the next 5 years.
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