Hyundai seizes on lithium supply chain
The actual sales volume will depend on the final purchase contracts, with pricing to be determined based on a formula specified in the agreement. Ganfeng Lithium is the world’s largest lithium producer, also supplying battery material to the likes of Tesla, Volkswagen and BMW.
The contract, which started this year and will run to 31 December 2027, was reached between the two companies after fully considering the current situation of the lithium market, Ganfeng said.
Demand for lithium hydroxide as a critical raw material in high-nickel cathodes is growing because it contributes to higher energy density and better charge-discharge performance in EV batteries. Hyundai currently relies on cells with a nickel content of up to 91 per cent.
The Korea Economic Daily also reports that Hyundai had already signed a four-year contract for lithium hydroxide with another Chinese supplier, the Shenzhen Chengxin Lithium Group, less than a fortnight ago. Again, details still need to be made available.
Still, it is not the first time Hyundai Motor Group hitches onto the supply chain. The company reportedly agreed to cooperate with Korea Zinc along the entire nickel value chain for EV batteries in August 2023.
Aside from procurement and processing, “ensuring a stable supply of processed nickel and battery materials, and exploring new businesses, including battery recycling,” is among the stated targets.
Taking an even wider view, the move can be seen as part of Hyundai’s objective to decrease its dependency on Chinese battery manufacturers. News broke late last year about the company looking into LFP cells and working with smaller battery makers in South Korea. A Hyundai Motor Group official revealed at the time, “We are looking into working with small battery makers as well as large companies (like LG Energy Solution, Samsung SDI and SK On) here in Korea.”
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