Shares of Tesla (NASDAQ:TSLA) jumped Monday morning, rising as much as 5.1%. As of 12:15 p.m. EDT, the stock was up 3.2%.
The growth stock‘s gain comes as the automaker signed an agreement with Piedmont Lithium (NASDAQ:PLL) for lithium supply. In addition, Tesla may be looking to acquire a stake in LG Energy Solution, a battery business that will soon divest from LG Chem, according to a separate report.
The news of Tesla’s five-year lithium supply agreement with Piedmont puts some action behind some of the bold vision the electric-car company laid out for its battery ambitions at its Battery Day event last week.
“We are excited to be working with Tesla, which represents the start of the first US domestic lithium supply chain and a disruption to the current value chain,” said Piedmont CEO Keith Phillips in a press release Monday morning.
A stake in LG Energy Solution would similarly bolster Tesla’s competitive positioning in the battery industry. “Tesla is looking to acquire a stake in LG Energy Solution. Specifically, Tesla is said to be exploring taking up to a 10 percent stake in LG Energy Solution,” an anonymous source reportedly told The Korea Times.
At Tesla’s Battery Day event last week, CEO Elon Musk unveiled plans to vertically integrate some of its battery production. This integration, along with innovation in cell design and battery pack manufacturing, would help vehicle battery pack costs come down sharply over time, Tesla asserted.