LG makes batteries in its LG Chem division, but the battery business is being spun off into a new company - LG Energy Solutions. So electric carmaker Tesla would take a piece of LG Energy Solutions if a deal happens.
Tesla is looking for a stake of up to 10% in the battery maker, a source told the Korea Times.
Tesla shares traded Monday at $421.92, up 3.58%, and have skyrocketed 404% so far this year.
The initial agreement is for five years and may be extended for another five years, Piedmont said.
“The agreement covers a fixed commitment representing approximately one-third of Piedmont’s planned SC6 production of 160,000 tonnes per annum for the initial five-year term,” Piedmont said.
“The SC6 sales are expected to generate between 10-20% of Piedmont’s total revenues from its proposed integrated mine-to-hydroxide project for the initial five-year term.”
American depositary receipts of Piedmont traded at $30.85, up an astronomical 180.45%, and have exploded 273% year to date.
Morningstar analyst David Whiston is cautious on Tesla. “There is evidence suggesting that Tesla will succeed, but if not, Tesla will remain an automaker for the wealthy,” he said in a report last week. Whiston puts fair value at $195.