Australia’s Kidman Resources to supply lithium hydroxide to Tesla Inc

(Reuters) – Australian lithium miner Kidman Resources said on Thursday it has entered into a binding agreement to supply lithium hydroxide to electric car maker Tesla Inc.

FILE PHOTO: A man looks at a Tesla Model S car at its showroom in Beijing, China January 29, 2014. REUTERS/Kim Kyung-Hoon/File Photo

The deal is for an initial three-year term on a “fixed-price take-or-pay basis” from the first product delivery, and contains two three-year term options, the company said in a statement.

Kidman said it was also in talks with other strategic, globally significant parties seeking refined lithium offtake.

Reporting by Aaron Saldanha in Bengaluru; editing by Richard Pullin