Chinese Yahua Group received a new order from Tesla for the supply of lithium
Chinese industrial group Yahua has received a new order from Tesla to supply lithium carbonate, a key raw material for the production of batteries for electric vehicles.
Under a purchase agreement dated June 19, Yahua through its subsidiary Yahua Lithium Ya 'an will supply Tesla with an unspecified amount of lithium carbonate between 2025 and 2027. There is also an option to extend the contract for another year.
The price of lithium carbonate will be determined in accordance with the method agreed upon by the two parties, the agreement states.
There is currently a valid contract signed with Yahua to supply 63,000 to 88,000 tons of lithium hydroxide to Tesla between 2021 and 2025 for a total of $880 million. In August last year, the parties extended the contract for 7.5 years for a larger supply - from 207 thousand to 301 thousand tons.
According to the group's annual trading report, by the end of 2023, Yahua had already supplied the American automaker with lithium products worth 5.8 billion yuan (USD 799 million).
Headquartered in Sichuan, Yahua, which mainly produces and sells industrial explosives, is actively involved in the production of electric vehicle batteries and is one one of the first companies in China to produce lithium hydroxide. The company currently has partnerships with Contemporary Amperex Technology Ltd., the world's largest battery manufacturer, as well as South Korean companies LG and SK On.
The group also has investments in several lithium mining projects around the world , led by the Kamatiwi mine in Zimbabwe, which has already begun mining battery material and is expected to reach full production this year.
The company also has purchase agreements with lithium producers, including the Vancouver Sigma and Australian Pilbara Minerals.