Hyundai Inks Extended EV Battery Pact with Chinese Lithium Firm

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Hyundai Motor Company has solidified a strategic alliance with Ganfeng Lithium Group Co., Ltd., entering a substantial “Long-Term Supply Agreement” focusing on lithium hydroxide products essential for electric vehicle (EV) battery production.

Supply Agreement Details: Under the terms of the agreement, Ganfeng Lithium and its subsidiaries commit to supplying Hyundai with lithium hydroxide products annually. The agreement outlines specific quantities, with actual purchase and sales amounts to be determined by final purchase orders. The pricing structure follows a predefined formula specified in the agreement.

Contract Duration: The binding contract spans from January 1, 2024, to December 31, 2027, ensuring a prolonged and stable supply of crucial components for Hyundai’s EV battery production.

Significance of the Partnership: Ganfeng Lithium emphasizes that this collaboration with Hyundai represents a mutually advantageous partnership. The agreement aligns with the current dynamics of the lithium market, showcasing a strategic response to evolving industry conditions.

Business Impact: Through this extensive supply agreement, Ganfeng Lithium not only addresses Hyundai’s vital lithium demand but also foresees enhanced profitability. The collaboration is poised to contribute significantly to Ganfeng Lithium’s long-term growth, marking a milestone in sustainable and profitable EV battery production.

This strategic collaboration underscores Hyundai’s commitment to securing essential resources for its electric mobility initiatives while fostering a strong, enduring partnership with Ganfeng Lithium in the dynamic landscape of the EV market.

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