Galaxy Resources Ltd. denied a report from The Australian Financial Review claiming the company had secured a lithium off-take agreement with Japan's Panasonic Corp., which supplies batteries to Tesla.
Shares of the company rose to an intraday high of A$3.03 each Oct. 3, from an intraday low of A$2.72 following publication of the article.
Citing unnamed sources, The Australian Financial Review reported that Galaxy had secured a lithium off-take agreement with Panasonic and shipping data showed product being moved from the company's Mount Cattlin lithium operation in Western Australia to Japan.
The report also claimed Galaxy's management team signed the deal in Japan two weeks ago.
In a same-day response to the ASX, Galaxy Resources said the claims made in the article were "not factually correct."
Galaxy said it is in informal discussions with a number of companies, including Panasonic, but has not yet signed any agreements.
"The company is also in confidential discussions with car manufacturers in respect of the long-term supply of lithium but these discussions are also at this stage informal," the company said in the statement.