Ganfeng will supply battery-grade lithium hydroxide products to Hyundai Motor under a contract valid from January 1, 2024 to December 31, 2027.
(Image credit: CnEVPost)
China's Ganfeng Lithium -- the world's largest lithium producer by market capitalization -- has signed a supply agreement with South Korean automotive giant Hyundai Motor, as carmakers try to secure upstream supplies of raw materials in the era of electric vehicles (EVs).
Ganfeng recently signed a long-term supply agreement with Hyundai to supply battery-grade lithium hydroxide products to the South Korean automaker, with the actual sales amount subject to final purchase orders, according to a stock exchange announcement by the Chinese company today.
The contract, which is valid from January 1, 2024, to December 31, 2027, was reached between the two after fully considering the current situation of the lithium market, Ganfeng said.
The cooperation will help meet Hyundai's demand for lithium, a key raw material for battery production, and will also help Ganfeng boost its profitability, the announcement said.
Ganfeng expects the cooperation to have a positive impact on the company's operating results during the contract period.
Ganfeng is one of the manufacturers in China with the most complete supply of lithium series products, with a production capacity of more than 40 lithium compounds and lithium metal products, which are widely used in EVs, aerospace, functional materials, and pharmaceuticals.
Battery-grade lithium hydroxide is a type of lithium hydroxide, which is mainly used in the production of lithium-ion batteries.
In addition to being a lithium producer, Ganfeng is also developing power batteries.
The company unveiled its first-generation solid-state battery on December 10, 2021, which is a solid-liquid hybrid lithium-ion battery.
On July 31, 2022, Ganfeng said it broke ground on a solid-state battery production base in Chongqing, which will have 10 GWh of battery capacity and 10 GWh of pack capability upon completion. It did not mention at the time when the site would go into production.
On May 19, 2023, Ganfeng said it had begun mass production of its first-generation solid-state battery, with an energy density up to 260 Wh/kg and a production line designed for an annual capacity of 4 GWh.
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