Posted on 10 Feb 2023
Shenzhen-listed Chemical company Yahua Group's wholly-owned company Yahua Lithium (Ya'an) has signed an agreement to supply South Korean LG Chem with battery-grade lithium hydroxide monohydrate, Kallanish learns.
According to Yahua's announcement, the agreement was signed on 7 February and is effective from 2023 to 2026. The total quantity is 30,000 tonnes, but the exact amount for each year, as well as prices and payment method, have not been disclosed in detail.
According to data from 100ppi.com, the market price of battery-grade lithium hydroxide monohydrate in China is about CNY 480,000 ($70,732.60)/t. Based on this price, this supply deal is probably worth about CNY 14.4 billion for Yahua.
Yahua has been vigorously expanding its partnership with industry leading companies. Earlier, it established a three-year supply deal with South Korean company SK On for 30,000 t/y lithium hydroxide and a five-year lithium hydroxide supply deal with US electric vehicle company Tesla.
Currently, Yahua has lithium salt production capacity of about 43,000 t. The company is constructing a 50,000 t/y battery-grade lithium hydroxide project using raised fund, and by the end of this year it is expected to complete production lines covering 30,000 t/y of production capacity. In 2025, the company is expected to have a total production capacity of over 100,000 t/y.
Source:Kallanish
