Ganfeng Lithium signs new contracts with LG Chem, Tesla
Published: Monday, 22 October 2018
A supplementary contract extends LG Chem’s offtake agreement with Ganfeng Lithium to 2025, while the producer has also signed an agreement for LiOH supply to carmaker Tesla.
Ganfeng Lithium has signed a supplementary contract with LG
Chem to extend its offtake agreement for a further three
years to the end of 2025, it said on Thursday September
This agreement will provide the battery maker with another
45,000 tonnes of battery-grade lithium carbonate and lithium
LG Chem initially agreed an offtake deal with Ganfeng
Lithium on August 14, with the latter supplying 47,600 tonnes
of lithium hydroxide from 2019 to the end of 2022.
The volumes have increased to a total of 92,600 tonnes of
lithium carbonate and lithium hydroxide from 2019 to 2025 in
the latest supplementary contract.
The two contracts lock purchasing volumes but not prices,
with purchasing prices to be adjusted according to market
Meanwhile, Tesla has also agreed an offtake deal with
Ganfeng Lithium, the lithium producer said on Friday.
Ganfeng will provide 20% of its lithium hydroxide production
capacity to Tesla between 2018 and the end of 2020 at an
adjustable market price, Ganfeng said. The contract can be
extended for a further three years on expiry.
Chinese lithium prices have continued on a downtrend this
year and downstream buyers are reluctant to sign contracts at
fixed prices in case the value of lithium falls further. This
has been reflected in these latest offtake agreements in which
only volumes have been locked in, but not prices.
Fastmarkets assessed the Chinese domestic spot battery-grade
lithium carbonate price (min 99.5% Li2CO3) at 78,000-82,000
yuan ($11,278-11,857) per tonne at the time of writing, down
from 80,000-85,000 yuan per tonne in the previous week.
Battery-grade lithium hydroxide monohydrate (min 56.5%
LiOH.H2O) prices were 110,000-130,000 yuan per tonne at the
same time, unchanged week on week.