Tesla should have no problems sourcing lithium after signing a five year deal with a Chinese supplier for battery-grade lithium hydroxide.
The deal was announced on Tuesday by China’s Sichuan Yahua Industrial Group Co. and reported by Automotive News. No financial details of the deal were released, but according to a filing with the Shenzhen Stock Exchange it is estimated to be worth between $630-$880 million over the five years.
As one of the key ingredients in their batteries, Tesla is always looking to shore up their supply of lithium as demand for their vehicles increase. In North American Tesla signed an extension to its deal earlier this year with Livent, a company based in Philadelphia.
Tesla will continue to get lithium from its other supplier in China, Ganfeng Lithium. Ganfeng is one of the largest lithium producers in the world and has been key in Tesla’s ramp at Giga Shanghai.