Australia’s Core Lithium said on Thursday the deadline to conclude a term sheet with Tesla Inc as part of a deal to supply the electric vehicle maker with spodumene concentrate had passed without an agreement.
Shares of Core Lithium fell 7.2% to A$1.35 in early trade.
The lithium explorer had said in March that it had signed a term sheet to supply Tesla with up to 110,000 tonnes of spodumene from its Finniss project in Australia’s Northern Territory.
The term sheet was subject to the companies negotiating and executing a definitive agreement by Aug. 27, which was extended to Oct. 26 to further negotiate terms.
“I want to thank Tesla for the time taken to negotiate with Core and look forward to maintaining an open and ongoing dialogue,” Core Lithium Chief Executive Officer Gareth Manderson said.
Tesla has already struck a lithium-supply deal with Australia’s Liontown Resources, as carmakers globally race to secure supplies of components used in making EVs.
Tesla did not immediately respond to a Reuters request for comment.
