chinese lithium giant agrees three-year pact to supply tesla - lithium battery suppliers

New delhi: China's largest producer of lithium, one used for electricity-
Said it had reached an agreement with Tesla.
The supply of Part 5 of its products to automakers highlights the push for the supply agreement.
Tesla will purchase lithium from a designated battery supplier-
Hydrogen oxide products from Ganfeng Lithium
Its unit, Jiangxi-
The Shenzhen-based company said in a document submitted to the Shenzhen exchange on Friday.
The agreement, which runs from 2018 to 2020, could be extended for three years, Ganfeng said.
Its shares soared. Electric-
Car manufacturers, including Tesla (Tesla) of Elon Musk, are working to ensure the supply of battery lithium batteries as investors and mining companies are evaluating the growth potential of the industry.
Still, emerging markets were hit in 2018 due to falling prices, and some banks predicted that new mining projects would exceed demand growth.
Ganfeng announced plans to establish relationships with Tesla and battery maker LG Chemical Co. , Ltd.
, Helps to show potential investors the quality of their products before planning an initial public offering in Hong Kong
Analyst Jamie Wang said in an email.
Earlier this week, Ganfeng announced an agreement to supply LG chemistry between 2019.
2025 according to another document, under the supplementary contract.
By the end of this year, the company's lithium compound capacity may increase to 75,000 tons of carbonated equivalent, making the producer the second largest producer in the industry.
According to the data quoted by CRU Group research in its IPO prospectus, this is the largest.
In addition to Wednesday's deal, Ganfeng has now locked in two of the industry's largest supply agreements-Simon Morse, general manager of London --
Benchmark Mineral, the company's industry consultant, said by phone.
"These deals are dwarfed by the size of the entire lithium hydroxide market a few years ago," Moores said at a forum in Sydney . ".
According to the forecast of Benchmark Minerals, Tesla may need up to 28,000 tons of hydrogen oxide lithium per year from the end of next year, with battery production at its Nevada plant equivalent to 35 gigawatt hours.
Car-to-
This year, energy storage producers reached an agreement with Australian Kidman Resources Co. , Ltd. to increase lithium supply from the beginning of the next decade.