Hyundai Motor Company recently signed an agreement with Chengxin Lithium Group, a Chinese firm, for the supply of lithium hydroxide. The details of the agreement have not been disclosed. This is the second agreement that Hyundai has signed for the supply of this raw material. Last week, they reached an agreement with Ganfeng Lithium.
Lithium hydroxide is a fine powder primarily used for the preparation of cathode materials with a three-layer structure for lithium-ion batteries. These materials consist of lithium, nickel, manganese, cobalt, and aluminum. According to Bloomberg NEF forecasts, the demand for lithium hydroxide by the end of the decade is expected to increase tenfold compared to 2020.
Ganfeng Lithium, a Chinese lithium producer, has signed another supply agreement, this time with Hyundai Motor Company. The agreement is effective from January 1 of this year until the end of 2027. The price of the product sold by Ganfeng will be determined based on a previously agreed pricing formula. Financial details of the agreement have not been disclosed.
Ganfeng specializes in extracting lithium from salt deposits and is one of the main suppliers of this raw material to automotive companies. The lithium producer has also entered into long-term agreements with Bayerische Motoren Werke and Tesla. Volkswagen also purchases raw materials from Ganfeng.
“Signing this long-term supply agreement can meet Hyundai’s demand for key lithium raw materials used in battery production, thereby improving our company’s long-term profitability and enabling sustainable growth,” said Ganfeng.
Lithium prices have significantly declined in recent days. According to Benchmark Mineral Intelligence, it is currently worth 81% less than a year ago, and supply currently exceeds demand.
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The source of the article is from the blog mgz.com.tw