On Wednesday, Canadian company Pure Energy Minerals announced that it signed an agreement with Tesla Motors to develop a lithium mine in Nevada.
The mine site is just three and a half hours from Tesla's Gigafactory, which is currently being built outside of Reno, Nevada. The first phase of the Gigafactory, which is also backed by Panasonic, should be completed next year. When the factory is completed, it could supply up to 35 gigawatt-hours of batteries, which will be used in Tesla's electric cars and stationary storage home battery units.
Pure Energy Minerals still has to complete a preliminary economic assessment to confirm that it can move ahead with the mining operations in Clayton Valley, Nevada. The company owns an expanse of lithium brine in that area, which would supply the lithium hydroxide that Tesla needs to produce its batteries if the mining company meets its milestones for development.