Tesla has signed new long-term contracts with China-based battery-materials suppliers, in hopes to continue securing necessary minerals for electric vehicles (EVs) in the years to come.
Tesla signed pricing agreements with both Zhejiang Huayou Cobalt Co. and CNGR Advanced Material Co. to supply the automaker minerals through the mid-decade, according to stock-exchange statements from each company, reports Bloomberg.
The deals refer to ternary precursor materials, which are the chemical cocktails that store energy in the lithium-ion batteries that are common for EVs.
The news comes amidst soaring demand for EV battery minerals, as EVs are inching closer to center stage in the auto market as a whole.
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Huayou Cobalt is set to supply cobalt, nickel and manganese to Tesla from July 1 to the end of 2025 at market prices, while CNGR plans to supply Tesla between 2023 and 2025.
Shares for both Huayou Cobalt and CNGR each jumped by over 9 percent on Monday.
Automakers such as General Motors (GM) and Ford have also revealed supply lists of their own in recent months.
Earlier this year, Tesla was looking to ink a graphite deal with Mozambique, Africa, in order to help reduce the automaker’s reliance on China.
Currently, China produces and processes most of the world’s EV battery minerals, though new mining and refining projects are being looked into in countries such as Australia, Chile, Argentina, Indonesia and still more yet.
