Hyundai Motor Group signed a long term agreement with Chilean mining group Sociedad Quimica y Minera de Chile (SQM) for the supply of lithium hydroxide for its electric vehicle (EV) batteries.
The deal is the automaker’s third direct long term lithium hydroxide supply contract this year after it also signed agreements with Chinese suppliers Ganfeng Lithium and Chengxin Lithium to secure long term access to low cost lithium.
Global lithium hydroxide prices are currently at a three year low with new capacity coming on stream as growth in battery electric vehicle (BEV) sales has slowed since last year.
HMG plans to ramp up EV production in the US later this year when it completes construction of the Hyundai Motor Group Metaplant America assembly plant in Savannah, Georgia.
SQM said in a statement “Hyundai and Kia have decided to secure a portion of their future lithium hydroxide supply from SQM after considering the company’s many qualities as a leading lithium supplier with a growth plan, proven operational capabilities, extensive commercial and technical expertise, high quality standards and environmentally sustainable production."
