Tesla Lands Lithium Supply Deal With Chinese Giant

Tesla Gigafactory

SEP 22 2018 BY MARK KANE 10

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.”

Source: Bloomberg

Categories: China, Tesla

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10 Comments on "Tesla Lands Lithium Supply Deal With Chinese Giant"

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groingo

Watch the idiot Trump slap tarrifs on them just because!

Yomama

Tesla would be exporting them to China.
If anything China will slap tarrifs on them.
Who’s the idiot?

Loverboy

Yomama will pay the tariff.

windbourne

???
This lithium is not coming here. This is strictly for the Chinese factory, and Tesla will not be exporting from China.

Pushmi-Pullyu

I assume so, yes. Can’t think of any good reason to ship bulk lithium ore (or what this article calls “lithium carbonate equivalent”) all the way from China to Nevada. There are plenty of sources far closer, including some in Nevada itself.

antrik

Ganfeng is a Chinese company. That doesn’t mean the actual minerals necessarily come from China. And currently, the biggest exporter of lithium is Australia — so if it *was* indeed from China, that wouldn’t be any worse. (The other big exporters are Chile and Argentina; so not much different either.) The relatively small deposits in Nevada are not even being exploited yet.

Nobody ships “bulk lithium ore” across the world. It’s processed into (more or less) pure lithium hydroxide (for batteries) or lithium carbonate (for some other uses) before shipping.

“Lithium carbonate equivalent” is a unit of measure. It applies to *any* form — no matter whether it’s “raw ore”, or processed into hydroxide or actual carbonate.

antrik

The contract is “from 2018 to the end of 2020” (with an option for three more years). It is clearly *not* just for the Chinese factory, which won’t even operate before the end of 2020.

SJC

Articles state that it is NOT just for China.

Brian

Sweet. 500,000 Tesla’s made in China for the local marked. Tesla Business Plan Part Deux running like clock work.