Hyundai and Kia procure lithium from SQM

The Chilean lithium producer SQM has concluded a long-term purchase agreement with Hyundai and Kia to supply the two automotive companies with lithium hydroxide.

SQM has not disclosed details of the quantity of lithium to be supplied or financial conditions. The Chilean company merely states that the deal is a “strong motivation” to continue its expansion plan for lithium hydroxide and that Hyundai and Kia have decided to secure “a portion” of its future lithium hydroxide supply from SQM.

SQM can currently produce around 40,000 tons of lithium hydroxide per year, a figure the company cited in its first quarter annual report, according to Reuters. SQM first extracts lithium carbonate in Salar de Atacama and then processes the material itself into lithium hydroxide as a raw material for battery production.

SQM plans to significantly expand its domestic production by 2025, with a target of 100,000 tons. At the end of May, SQM signed an agreement with the state-owned mining company Codelco to establish a joint venture that is intended to significantly increase lithium production in the Salar de Atacama. SQM is also investing in the expansion of capacities in China and Australia.

In addition to the Hyundai Motor Group, customers include Ford and the South Korean cell manufacturers LG Energy Solutions (LGES) and SK On.

reuters.com, sqm.com (PDF)