Hyperdrive
Chinese Lithium Giant Agrees Three-Year Pact to Supply Tesla
- Deal by Ganfeng follows supplementary agreement with LG Chem
- Shenzhen-listed producer plans initial offering in Hong Kong
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China’s top producer of lithium, a metal used in electric-vehicle batteries, said it’s agreed a deal with Tesla Inc. to supply a fifth of its production to the vehicle maker, highlighting the push for supply pacts.
Tesla will designate its battery suppliers to buy lithium-hydroxide products from Ganfeng Lithium Co. and its unit, the Jiangxi-based company said in a filing to the Shenzhen exchange on Friday. The agreement runs from 2018 to 2020 and could be extended by three years, Ganfeng said. Its shares jumped.