Tesla, Yahua extend lithium hydroxide supply agreement to 2030

China-based lithium salts producer Sichuan Yahua Industrial has extended the duration of its lithium hydroxide supply agreement with Tesla from 2025 to 2030. The two agreed to renew their supply contract from 1 August 2023 to 31 December 2030, during which Yahua will supply a total of 207,000-301,000 t of battery-grade lithium hydroxide to Tesla.

Yahua is one of the earliest chemical enterprises established after the founding of the People’s Republic of China. The Group has two main businesses: lithium and explosives. Yahua currently has a lithium salt production capacity of 73,000 tons, including Lithium Technology, Ya’an Lithium, Sichuan Guoli and Xingsheng Lithium.

By 2025, Yahua is targeting doubling its lithium salts output capacity to more than 173,000 t/year. Yahua says it will invest in lithium salt production bases in North America, Europe, Africa and other countries according to the development progress of overseas lithium resources.

Yahua has also signed a supply agreement with South Korea’s SK New Energy (Shanghai) for 20,000-30,000 t of battery-grade lithium hydroxide from its wholly-owned subsidiary Yahua (Ya’an) during 2023-25. South Korea’s LG Energy Solution will also purchase no more than 30,000 t from Yahua (Ya’an) over 2023-25.

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