Tesla Expands Battery Production Plans, Signs Supply Agreement With Ganfeng Lithium

By Benzinga
Benzinga
Benzinga
November 2, 2021 Updated: November 2, 2021

While Tesla Inc stock continues roaring higher, the company continues to push the limits of electric vehicle technology. After a 100,000-vehicle order from Hertz, Tesla is more demand constrained than ever, ramping up production to meet the insane demand for its vehicles.

To build more vehicles, Tesla needs more batteries. And to make more, it has signed an agreement with the Chinese company Ganfeng Lithium, as shared by Tesmanian.

Ganfeng Lithium has signed a contract to supply battery-grade lithium hydroxide to Tesla. Ganfeng is the world’s leading lithium company by market capitalization. According to its website, Ganfeng handles upstream and downstream lithium processes such as lithium resource development, midstream lithium salt deep processing, and lithium metal smelting.

The contract includes the supply of metal for Tesla for a three-year period from Jan. 1, 2022 to Dec. 31, 2024. The amount Tesla will pay under the contract is still unknown, as Ganfeng is still waiting to process the order from Tesla.

By Benzinga EV Insights 

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