Tesla makes deal for nearby lithium supply

RENO — Tesla Motors has finalized an agreement that will allow the company to obtain lithium from a mine near its Nevada factory.

The Reno Gazette-Journal reports that Vancouver-based Pure Energy Minerals says it has made arrangements to supply lithium for the electric car manufacturer's batteries.

The agreement is contingent on Pure Energy's ability to successfully develop its Nevada Lithium Brine Project in Clayton Valley. The mine is about three and a half hours from Tesla's "Gigafactory 1" site east of Reno.

Pure Energy's deal with Tesla will last for five years if it meets the terms of the agreement.

It won't be able to meet all of Tesla's energy needs, though. Tesla CEO Elon Musk has signed a five-year agreement with a lithium site in Mexico.