On January 18, Ganfeng Lithium Group announced a strategic collaboration with Hyundai Motor Company through the signing of a “Long-Term Supply Agreement.” According to the terms of the agreement, Ganfeng Lithium and its subsidiaries will provide Hyundai Motor with lithium hydroxide products for the production of electric vehicle (EV) batteries. The agreement stipulates annual supply quantities, with actual purchase quantities and sales amounts to be determined by final purchase orders. Pricing for the products will be based on a specified formula in the agreement, and the contract’s performance period extends from January 1, 2024, to December 31, 2027.
This collaboration is seen as mutually beneficial, addressing Hyundai’s crucial demand for lithium as a key raw material in battery production, while also contributing to Ganfeng Lithium’s sustained profitability and long-term development within the current state of the lithium market. The signing of the agreement is anticipated to positively impact Ganfeng Lithium’s operational performance throughout the duration of the contract.