Tesla signs three-year supply deal with China’s Ganfeng Lithium

TSLA

China’s Ganfeng Lithium has signed a new agreement with Tesla to provide the automaker with its battery-grade lithium hydroxide products for a period of three years.

The new deal will begin in 2022 and is expected to help ramp production as Tesla opens two new factories next year – Giga Texas and Giga Berlin.

Financial details of the deal were not disclosed, but in a filing with the Shenzhen Stock Exchange on Monday, Ganfeng says the sales amount and value of the contract is still pending. (via Reuters)

The deal could also help Tesla launch its new 4680 battery cell. At the company’s Annual Meeting of Stockholders, CEO Elon Musk said the company is producing enough batteries at its Kato Rd facility to scale production of the Model Y at Giga Texas.

Production of the 4680 battery cell would however need to expand beyond the pilot facility to keep pace with the new factories.

The news of this deal comes just days after a reported deal between Tesla and China’s BYD for 45GWh of lithium iron phosphate (LFP) batteries. That deal would be enough to supply 800,000 EVs as Tesla plans to shift its line of Standard Range (SR) vehicles to the cheaper battery.

BYD denies report they will be supplying Tesla with their Blade EV batteries

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