（Cover image source: InsideEVs）
On December 29th, Yahua Group announced that it has signed an agreement with Tesla. From 2021 to 2025, Yahua Group will provide Tesla with battery-grade lithium hydroxide totaling $630 million to $880 million in value.
In 2018, Tesla signed a cooperation agreement with Jiangxi Ganfeng Lithium, and Ganfeng Lithium will provide Tesla with battery-grade lithium hydroxide for three years, accounting for 20% of its total production capacity.
Sichuan Yahua Group was established in 1952 and its main business is in civilian explosives and lithium operations. Although lithium demand has declined and prices hit a new low due to this year’s market supply and demand situation, as well as the impact of the COVID-19 pandemic, according to Reuters, Yahua Group built a new lithium hydroxide plant with an annual output of 20,000 tons in May, which more than doubled its production capacity compared to before.
🔗 Source: Reuters
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