The Core Lithium Ltd (ASX: CXO) share price is sliding today as negotiations with Tesla continue on a lithium deal.
Core Lithium shares are currently trading at $1.345, a 3.24% fall. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is down 2.23% today. Pilbara Minerals Ltd (ASX: PLS) shares are falling 2.25%, while the Allkem Ltd (ASX: AKE) share price is down 1.58%.
Let's take a look at what is going on with Core Lithium.
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Offtake agreement termination date extended
Core Lithium announced today it has agreed with Tesla to extend the termination date on an offtake agreement to 26 October.
In March, Core Lithium announced it had entered a binding offtake term sheet for the supply of lithium to electric vehicle manufacturing giant, Tesla.
The deal involves Core Lithium supplying Tesla with up to 110,000 tonnes of spodumene concentrate over four years from the Finniss Lithium Project.
The plan is subject to the two companies entering a definitive product purchase agreement.
Previously, the final date for completion of negotiations was 27 August. However, with today's announcement, this has now been extended to October.
Commenting on today's news, Core Lithium said:
The extension allows Core and Tesla to complete negotiations for the definitive full form binding offtake agreement.
Core Lithium share price snapshot
The Core Lithium share price has exploded 320% in the past year, while it has gained 128% year to date.
However, in the past week, Core Lithium shares have lost nearly 4%.
Core Lithium has a market capitalisation of about $2.3 billion based on the current share price.
