Tesla secures long term lithium hydroxide supply
The Chinese firm Ganfeng Lithium has signed an agreement with Tesla for the delivery of lithium hydroxide. The agreement runs from 2018 until 2020, with an option to extend for another three years. Ganfeng Lithium will deliver one fifth of their total lithium hydroxide stock to Tesla.
EV suppliers generally need to secure supplies of lithium for their future batteries. Tesla alone may need up to 28,000 tonnes of lithium hydroxide per year to meet the demand for their vehicles, by the end of next year. This would then all flow into the cooperation with Panasonic, who is manufacturing Tesla’s batteries.
At the end of August, LG Chem signed an agreement with the Chinese suppliers for the delivery of 48,000 tonnes of lithium hydroxide until the end of 2022. This would be sufficient, according to LG Chem, to manufacture batteries for up to one million EVs with a range up to 320 km.
Between the two deals, Ganfeng has officially sealed the two largest deals ever of the lithium industry. Furthermore, the announcement of the deals will likely be instrumentalized to find further investors at the planned stock market entry in Hong Kong and sponsor further expansion for the company.
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