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[ferro-alloys.com]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.

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 offtake of refined lithium, a key ingredient used in batteries for electric vehicles.

The deal comes less than a fortnight after Kidman chose a site in Kwinana, Western Australia, with its joint venture partner Sociedad Quimica y Minera de Chile to develop a lithium processing plant.

Kidman said on Thursday the Tesla deal would represent less than a quarter of its share of initial nameplate production from the refinery for the first three years.

• [Editor:王可]