Pure Energy Minerals and Tesla Agree on Supply of Lithium Hydroxide for Next Five Years

Published By : 25 Sep 2015 | Published By : QYRESEARCH

Pure Energy Minerals will is set to make huge profits as it paces ahead to build the huge battery gigafactory after signing a bond with Tesla Motors Inc. The agreement states that Pure Energy Minerals Limited will supply lithium hydroxide to Tesla from its Nevada-based lithium brine project, after an economic and technical feasibility study approves it. Once the agreement comes into action 
Pure Energy make annual supply of lithium hydroxide to Tesla and its other buyers for the next five years.

With this agreement Pure Energy will be heralding the prime lithium brine resource in North America. As a subsequent spin off this will be a surge in the demand for lithium due to intensifying battery war. 

However, lithium supplies are dangerously dropping, a reflection of which can be seen in Lithium Oligopoly recent spike of 15% in its product prices. To keep the market up and running, the industry will have to welcome new producers who will be able to supply at lesser costs. A statistic shows that Tesla’s battery manufacturing unit alone will need 15,000 tons of lithium carbonate per year to start full operation by next year.

This arrangement between Tesla and Pure Energy helps in determining the price for a major chunk of Pure Energy’s production. The predetermined price will be well below the present current market rates. It will definitely be aligned with Tesla’s objective to constantly work on reducing the cost of lithium ion batteries it produces. Lithium is used for making batteries due its incredible electric output per unit weight. 

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