China’s Sichuan Yahua Industrial Group Co. reported on Tuesday it had signed a offer to provide battery-quality lithium hydroxide to Tesla Inc. for the upcoming five years.
Yahua, which is centered in southwest China’s Sichuan province, did not present tonnage figures but, in a submitting to the Shenzhen Inventory Exchange, put the overall value of the deal at $630 million to $880 million over 2021-twenty five.
Tesla, which started out providing the first automobiles from its plant in Shanghai in December past 12 months, presently sources lithium — a vital component in EV batteries — from China’s Ganfeng Lithium, one of the world’s greatest producers of the commodity.
Tesla did not right away respond to a request for comment on Tuesday.
In Might, Yahua put a twenty,000 tons for every 12 months lithium hydroxide plant into operation, more than doubling its earlier capacity, even as costs languished at multi-12 months lows amid oversupply and a knock to lithium need brought about by the coronavirus pandemic.