Hyundai Motor signs four-year battery material supply deal with Ganfeng Lithium

Korean auto giant, Hyundai Motor Group has signed a four-year supply agreement with China-based, Ganfeng Lithium, to acquire battery-grade lithium hydroxide -- a key electric vehicle battery material as per a Korea Economic Daily report.

The details of the deal such as financial terms & conditions, supply volume, and pricing have not been disclosed yet but, it marks the second deal of its kind by the Korean auto major to obtain lithium hydroxide directly from its producers in a bid to secure an advantage over upstream supply of battery raw materials.

"The contract will be valid from Jan. 1, 2024 to Dec.31, 2027," according to stock exchange announcement by the Chinese company.

The cooperation will help meet Hyundai's demand for lithium and will help boost Ganfeng's profitability, it added.

As per KED reports, Hyundai has signed a four-year contract for lithium hydroxide with another Chinese supplier, the Shenzhen Chengxin Lithium Group, a few weeks back. The details of which are still to be made public.