China-based company Sichuan Yahua Industrial Group Co Ltd said on Tuesday that it had signed a 5-year deal to supply battery-grade lithium hydroxide to Tesla.
Through its subsidiaries, Yahua engages in the manufacturing and sales of lithium carbonate, lithium hydroxide, and other lithium salt products. The company distributes its products domestically and overseas. Yahua, based in southwest China, indicated that the total contract value for 2021-2025 will be between $630 million and $880 million, Reuters reported. The company did not disclose the exact data on the tonnage that it will have to provide to Tesla.
In May of this year, Yahua put into operation a battery-grade lithium hydroxide and carbonate production plant with an annual production capacity of 20,000 tons.
At the moment, Tesla is already receiving lithium from the Chinese company Ganfeng Lithium, which is mainly engaged in the research, development, production, and sale of highly processed lithium products. The company's main products include lithium compounds, metal lithium, and lithium batteries. The deal to supply lithium from Yahua will further strengthen Tesla's position.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.