Lithium supplier, Core Lithium Ltd (OTC:CXOXF) has been notified by electric vehicle maker, Tesla (NASDAQ:TSLA) regarding a 2022 supply agreement that failed to be realized within the contracted timeframe, according to a statement from the Australian mining company.
Despite prior arrangements, the two firms were unable to reach an agreement by the preset date of October 26, 2022. In light of this, Core Lithium revealed during a presentation on Wednesday that Tesla intends to pursue "every possible legal recourse" unless the matter is amicably resolved through mutual discussions.
The indication of potential legal actions is associated with a contractual term sheet that the companies entered into back in March 2022. This term sheet was aimed at discussions regarding the specifics of a supply agreement, wherein Tesla, under the guidance of CEO Elon Musk, was expected to acquire spodumene, a mineral abundant in lithium.
The lithium manufacturer was in talks with Tesla to provide 110,000 metric tons of spodumene sourced from its Finniss project located in Australia's Northern Territory.
Shares of TSLA are down 1.48% in afternoon trading Thursday.