Tesla Lands Lithium Supply Deal With Chinese Giant
Ganfeng Lithium Co. finds Tesla and LG Chem among its customers.
China’s top producer of lithium – Ganfeng Lithium Co. – will supply lithium-hydroxide products to Tesla/Tesla’s selected battery manufacturer, according to the latest news.
The deal is for about a fifth of Ganfeng’s total production and will run from 2018 to the end of 2020 with an option for three more years.
Earlier, the company signed a deal with LG Chem, to supply lithium for the period of 2019-2025.
It’s expected that by the end of this year, production of lithium carbonate equivalent could reach 75,000 tons, which would translate to the 2nd highest output ever for Gangfeng. That would also mean some 15,000 tons for Tesla (20%). Tesla is expected to need as much as 28,000 tons of lithium hydroxide annually within a year from now.
All those deals with the world’s biggest EV battery players are very important for Ganfeng, which prepares for IPO in Hong Kong.
“Along with Wednesday’s deal, Ganfeng has now locked in the sector’s two biggest supply pacts, Simon Moores, managing director of London-based industry consultant Benchmark Mineral Intelligence, said by phone. “These deals are dwarfing the size of the entire lithium hydroxide market from only a couple of years ago,” Moores said from a Sydney forum.”
John Wisbey CEO, the Board and the entire @ILCtsxv team congratulate their partner @GanfengLithium on concluding a key three year contract to supply 20% of their production to @Tesla https://t.co/VYDY2ZxnBf pic.twitter.com/TR9YxxG9tz
— InternationalLithium (@ILCtsxv) September 21, 2018