US Rare Earth Minerals says it has no supply deal with Tesla
U.S. Rare Earth Minerals (OTCQB:USMN) said Monday management was “surprised” to read all over the news of a supply agreement the company supposedly has with with Tesla Motors (NASDAQ:TSLA) for the electric car maker lithium-ion batteries.
“USMN has no agreements of any kind with Tesla Motors Inc,"acting chairman and CEO Larry "Bear" Bonafide said in a statement. He added that USMN had no part in the press release and would take no responsibility for it.
The agreement was in fact with London-listed Rare Earth Minerals (LON:REM) and Bacanora Minerals (CVE:BCN)(LON:BCN) as first reported by the Wall Street Journal.
Tesla is building a $5 billion battery factory in Nevada, which aims to reduce battery costs by 30% or more, partly by bringing in in-house materials provided by REM and Bacanora.
The statement added that the deal between Tesla and the two companies would give the electric car maker access to below-market-rate lithium in exchange for minimum purchase amounts over a five-year period.
The two companies in partnership with Tesla will have rights to land in northern Mexico, where lithium can be obtained from mineral-rich clay.
(Featured image: Tesla Motors corporate headquarters in Palo Alto California by Windell Oskay)