Just like Lithium Americas (Nasdaq: LAC), the Core Lithium (CXO.AX) shares are confidently surging since October 2020. Even an ordinary stock trader knows what is pushing the CXO shares from the lowest under $0.50 to the current $1.2250 mark. There was no recent news for the last week but the core of the share price growth lies within the long-term binding agreement between Core Lithium and Tesla.
From Core Lithium, up to 110,000 tonnes of Li2O spodumene concentrate shall be mined and processed for Tesla which is one of the leading EV makers of the globe. The supply agreement is to be continued for four years.
This kind of agreement may be initiated with other EV makers as well. Nissan and Nio are also giant EV producers. Core Lithium could also approach them with intention of expanding the operation globally.
On March 14 Core Lithium’s Managing Director has appeared in one of the company’s tweets, saying the lithium is demanded really.
"The growth in demand is now very real."
Core Lithium's Managing Director Stephen Biggins provides his take on the state of the lithium sector. pic.twitter.com/dlk3zSCrQQ
— Core Lithium (@CoreLithium) March 14, 2022