Hyundai Motor Group has reported securing a four-year agreement with Chinese company Ganfeng Lithium to ensure the supply of lithium hydroxide, a crucial component in the manufacturing of batteries used in electric vehicles.
By Panorama Minero
Ganfeng is one of the largest lithium producers globally and supplies this material to major global electric vehicle manufacturers. In Argentina, Ganfeng operates the Caucharí-Olaroz projects in partnership with the state-owned JEMSE and Lithium Argentina (formerly Lithium Americas Corp). They are also involved in the Mariana project located in Salta, along with early-stage development projects known as Sal de la Puna, Pozuelos - Pastos Grandes, and Incahuasi.
According to the announcement, Hyundai Motor Group will purchase lithium hydroxide directly from one of the world's leading producers, Ganfeng Lithium Group Co., marking its second such agreement in the last month. The previous agreement was signed a few days ago with another Chinese company, Chengxin Lithium Group Co. These partnerships aim to position Hyundai favorably in the strategic minerals pricing competition, ensuring scalability in electric vehicle (EV) production.
This collaboration will help meet Hyundai's lithium demand, a key component for battery production, and also contribute to Ganfeng's profitability. Ganfeng anticipates a positive impact on the company's operating results during the contract period.
Ganfeng is one of China's manufacturers with the most comprehensive supply of lithium series products, with a production capacity of over 40 lithium compounds and metallic lithium products widely used in electric vehicles, aerospace, functional materials, and pharmaceutical products. Battery-grade lithium hydroxide is a type of lithium hydroxide primarily used in lithium-ion battery production.
"We are pleased to announce that we have signed a long-term supply agreement with Hyundai Motor Company for the supply of battery-grade lithium hydroxide to the company. As the world's leading eco-friendly lithium company, we are committed to promoting the application and development of clean energy with lithium at its core, and to creating a green, clean, and healthy life for human development and progress," concluded Ganfeng representatives.
