Got Lithium?
Tesla just agreed to a five-year deal with Chinese lithium supplier Yahua estimated between $630-880 million (per Reuters).
Prior to this deal, Tesla was receiving the lithium (an important material used in the production of EV car batteries) from Gangfeng Lithium, but it appears like they are looking to expand their options with this new contract.
The demand is present with Tesla beginning production on the Model Y; an EV crossover the brand expects to sell well in China. The massive factory that Tesla recently opened – located in Shanghai – will need as many batteries as possible as the Model Y is expecting 30,000 unit per month production numbers.
Yahua is making big moves of its own with the recent opening of a large lithium hydroxide plant capable of producing 20,000 tonnes of lithium hydroxide annually meaning this will hopefully be the start of a fruitful relationship between the two corporations.
