February 27, 2024

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Tesla reaches five-year lithium deal with Chinese supplier

China’s Sichuan Yahua Industrial Group Co. said on Tuesday it experienced signed a deal to offer battery-quality lithium hydroxide to Tesla Inc. for the subsequent 5 yrs.

Yahua, which is centered in southwest China’s Sichuan province, did not offer tonnage figures but, in a submitting to the Shenzhen Stock Exchange, set the full value of the deal at $630 million to $880 million around 2021-twenty five.

Tesla, which begun delivering the first automobiles from its plant in Shanghai in December last year, by now resources lithium — a important component in EV batteries — from China’s Ganfeng Lithium, a person of the world’s greatest producers of the commodity.

Tesla did not immediately respond to a request for remark on Tuesday.

In May possibly, Yahua set a twenty,000 tons for every year lithium hydroxide plant into operation, more than doubling its past potential, even as charges languished at multi-year lows amid oversupply and a knock to lithium demand introduced about by the coronavirus pandemic.