Where does Tesla get its lithium and do any ASX shares benefit?

These three ASX lithium shares have so far agreed to supply the electric vehicle giant.

| More on:
A man sitting at his dining table looks at his laptop and ponders the CSL balance sheet and the value of CSL shares today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Electric vehicle heavyweight Tesla has signed lithium supply deals with producers and developers from all over the globe
  • And plenty of those are listed on the ASX
  • ASX lithium favourites Piedmont Lithium, Core Lithium, and Liontown Resources have all entered supply deals with the NASDAQ-listed tech giant

When investors look for companies in the electric vehicle (EV) space, they almost inevitably come across tech giant Tesla Inc (NASDAQ: TSLA). The brand has been a cornerstone of the EV revolution so far. And, fortunately for ASX investors, numerous Australian lithium companies are involved with the giant.

Let's take a closer look at the ASX lithium shares teaming up with Tesla.

Where does Tesla get its lithium?

It hasn't yet been six months since Tesla co-founder and CEO Elon Musk tweeted the company could be forced to mine and refine lithium itself as prices of the material surged. But that's yet to happen.

Instead, the EV giant has continued signing supply deals all around the world. Many of which have been with companies listed on the Aussie bourse.

Australia has nearly a quarter of the world's lithium reserves, according to the US Geological Survey Mineral Commodity Summaries 2022.

Though Lake Resources NL (ASX: LKE) chair Stuart Crow recently told the Financial Times, via the World Economic Forum, "China owns basically 70% [to] 80% of the entire supply chain for electric vehicles and lithium-ion batteries".

It mightn't come as a surprise then that Tesla has supply deals with Chinese heavyweights Sichuan Yahua Industrial Group and Ganfeng Lithium.

The former signed a five-year deal with the EV giant back in 2020, Reuters reports. Late last year, the latter also entered a deal to supply lithium to Tesla for three years from 2022, the publication reported.

Tesla also has supply agreements with some Wall Street participants, including Livent.

And looking to Australia, three notable ASX lithium shares are doing business with the EV icon.

3 ASX lithium shares boasting deals with Tesla

Piedmont Lithium Inc (ASX: PLL) got in first. It signed a deal with Tesla way back in 2020.

The agreement covers a five-year term over which the lithium producer will supply Tesla with a third of its North Carolina deposit's production.

Originally, deliveries were to begin sometime between July 2022 and July 2023. However, according to Reuters, that date has been pushed back.

Two S&P/ASX 200 Index (ASX: XJO) companies have also recently shaken hands with Tesla.

Core Lithium Ltd (ASX: CXO) entered a four-year agreement to supply the vehicle manufacturer with 110,000 tonnes of spodumene concentrate from its Finniss Lithium Project in the Northern Territory in March.

Core Lithium and Tesla now have until October to finish negotiating an off-take agreement. The project's maiden export is on track to occur before the end of this year.

The final ASX share to have signed on with Tesla is Liontown Resources Limited (ASX: LTR). The company shook on a deal with the tech giant in June.

It agreed to supply up to 150,000 tonnes of spodumene concentrate annually from its Kathleen Valley Lithium Project in Western Australia. The project's production is expected to kick off in 2024.

Should you invest $1,000 in Larvotto Resources right now?

Before you buy Larvotto Resources shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Larvotto Resources wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Why are Fortescue shares charging higher today?

What is getting investors excited today? Let's find out.

Read more »

Business people discussing project on digital tablet.
Materials Shares

What does Macquarie think Liontown Resources shares are worth?

Let's see if analysts think that this lithium miner is in the buy zone or best avoided.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Materials Shares

Lynas shares charge higher on big news

What is getting investors excited today? Let's find out.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Liontown Resources shares roar higher on big news

This lithium miner is catching the eye with some big news. Here's what is happening.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

What does Macquarie think BHP shares are worth?

Is now a good time to buy the miner's shares? Let's find out.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Materials Shares

What does Macquarie think Pilbara Minerals shares are worth?

Is this lithium miner dirt cheap? Let's find out.

Read more »

Two miners standing together.
Materials Shares

Is it time to buy this beaten down lithium share?

This diversified miner’s share price has been hit on multiple fronts. What does it mean for investors?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here’s why.

Read more »