- A Shenzhen Stock Exchange filing showed that Yahua, put the total value of the contract, signed by its wholly-owned subsidiary Yaan Lithium, at $630-$880 million over 2021-25
- In May, Yahua put a 20,000 tonnes per year lithium hydroxide plant in Yaan city into operation
As per a report by Reuters, China’s Sichuan Yahua Industrial Group Co Ltd said that it has signed a deal to supply battery-grade lithium hydroxide to Tesla for the next five years. The report added that a Shenzhen Stock Exchange filing showed that Yahua, which is based in southwest China’s Sichuan province, put the total value of the contract, signed by its wholly-owned subsidiary Yaan Lithium, at $630-$880 million over 2021-25.
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The report added that in May, Yahua put a 20,000 tonnes per year lithium hydroxide plant in Yaan city into operation. It more than doubled its previous capacity. As per the report, Tesla already sources lithium – a critical ingredient in EV batteries – from China’s Ganfeng Lithium
The report added that Daiwa analysts wrote in a note that the Yahu deal underscores Tesla’s “huge demand” for battery-grade lithium hydroxide, “particularly in view of the ramp-up of Model Y production”. They added that they are expecting Ganfeng to continue to be the major if not largest lithium hydroxide supplier of Tesla on the back of this strong demand.
