One of the biggest challenges $Tesla (TSLA.US)$ had overcome on its road to EV dominance was the production of a mass amount of batteries for its vehicles.
The company recently took a major step to continue its dominance in this regard.
What Happened: Tesla signed an agreement with $Piedmont Lithium (PLL.US)$$Piedmont Lithium Inc (PLL.AU)$, an Australian-based lithium mining and processing company, as shared by Electrek.
Under the agreement, Tesla would have secure access to lithium hydroxide, a key component necessary to build the battery cells used in its electric vehicles. Piedmont Lithium is one of the few companies in the world that has the ability to process spodumene ore into lithium hydroxide.
This agreement would enable Tesla to have a reliable source of the mineral, which is essential for the production of the company's electric cars.
Why It Matters: The agreement was seen as a major milestone for Tesla, as it gave the company a secure source of supply for its lithium needs. The deal also served to strengthen the company's partnerships with other suppliers in the industry and could lead to even more agreements in the future.
In addition, the agreement could prove beneficial for both companies. For Tesla, it would provide the company with a reliable source of lithium, while for Piedmont Lithium, it would open up new opportunities for growth and expansion.