As Tesla continues to increase its global vehicle output, the company’s need for lithium for its electric vehicle (EV) batteries is at an all-time high – but they’re partnering with several suppliers to help maintain that problem.
Chinese lithium company Gangeng Lithium Co has signed a supply contract with U.S. automaker Tesla, according to a filing from Ganfeng to the Shenzhen Stock Exchange on Monday (via Reuters).
The contract will supply Tesla with three years’ worth of lithium starting in 2022, though details and the overall value of the deal are still pending Tesla’s purchase orders.
Ganfeng is the world’s largest lithium mining company when measured in market capitalization, and the company has supplied to Tesla in the past, as well as a slew of other EV automakers.
NIO Surpasses BYD as Most Valuable Car Brand in China, Says Hurun Report https://t.co/JzGp1WcEzz
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Amidst the increase in EV popularity this year, Ganfeng has posted a third-quarter earnings increase of 507 percent, with a nine-month profit increase of 648 percent.
Last month, Tesla announced plans to shift its Model 3 and Y units to lithium iron phosphate (LFP) EV batteries worldwide. In September, Tesla also signed a deal with Australia’s Piedmont Lithium, which includes an initial supply term of five years.
Tesla also signed a deal with China’s CATL for 800,000 vehicles’ worth of EV batteries last month, set to be allocated over next year’s sales plan.
