Hyundai Motor Group (HMG) this week signed an agreement to purchase lithium hydroxide for its electric vehicle (EV) batteries from China’s Ganfeng Lithium Group, a company estimated to be the world’s largest global producer of lithium.
The deal was effective immediately and intended to provide the automaker with a stable supply of raw materials as it looks to ramp up global output for battery electric vehicles (BEVs) over the next few years. Details of the deal were not disclosed, including volume and the length of the contract.
This was the second direct lithium supply contract signed by HMG this year after last week’s contract to source lithium hydroxide from Shenzhen Chengxin Lithium Group over the next four years.
Until recently, lithium supply deals have normally been signed by battery manufacturers and these two contracts are Hyundai Motor Group’s first to be signed directly with lithium suppliers.
Lithium prices last year plunged to their lowest level since 2021 and the automaker was locking in prices to protect itself from future price spikes.
See Also:
The deal followed recent moves by other automakers, including General Motors, Volkswagen Group, Tesla and Stellantis, to buy stakes in lithium miners and smelting companies to secure supplies of battery raw materials.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHMG, which includes Hyundai Motor and Kia Corporation, was targeting global BEV sales of 3.6 million annually by 2030.