Shanghai (ZXZC)- Ganfeng Lithium, one of the world’s top producers of the commodity used in electric vehicles, and its wholly-owned subsidiary GFL International Co.,Ltd. have inked a contract to supply Tesla Inc. and Tesla (Shanghai) Co.,Ltd. with battery-grade lithium products, Ganfeng said on Monday in a filing to Shenzhen Stock Exchange. 

Photo credit: Ganfeng Lithium

According to the contract, Ganfeng Lithium and its unit will provide Tesla with battery-grade lithium hydroxide products for three years starting from 2022. The actual sales volume and contract value will be determined based on Tesla’s procurement orders.

Ganfeng Lithium forged a strategic partnership with Tesla as far back as 2018. Per the former agreement, Tesla required its designated battery supplier to procure battery-grade lithium products from Ganfeng Lithium and GFL International Co.,Ltd. from Jan. 1, 2018 to Dec. 31, 2020.

Some analysts said the new cooperation is conducive to the reinforcement of the long-term partnership between Ganfeng and Tesla, and the improvement of Ganfeng's sustainable profitability and long-run development.