The Northern Territory's first lithium mine has opened. 

The Finniss Lithium Project, operated by Core Lithium, has officially opened south of Darwin.

It is the only running lithium mine in Australia outside of Western Australia.

The company says it will extract more than a million tonnes of lithium ore each year and export it overseas, where it is used as a vital component in the batteries for electric vehicles, as well as home batteries.

The company has already signed a contract to supply manufacturer Tesla. 

Core Lithium chief executive, Gareth Manderson, says soaring demand for electric vehicles (EVs) worldwide should sustain the mine over its 12-year life span.

“All the forecasts you see are showing that the demand for EVs is only going to increase, and the world needs a lot more spodumene and lithium carbonate mines to meet that demand,” he said.

The project could support up to 300 jobs, and plans to send its first shipment of ore in the first half of 2023.