Questions around this news
What does the expanded lithium supply agreement between Tesla and Sichuan Yahua cover?
The release says the companies expanded an existing lithium hydroxide supply arrangement. Under the reported terms, Sichuan Yahua is to supply Tesla with 207,000 to 301,000 tonnes between August 2023 and December 2030. The earlier agreement, signed in January 2021, covered 63,000 to 88,000 tonnes over five years.
Why is lithium hydroxide used in battery production?
Lithium hydroxide is a processed lithium chemical used in some rechargeable battery materials, including certain cathode chemistries. Its role is to provide lithium for the active materials that store and release energy during charging and discharging. Battery makers select materials based on performance, manufacturing requirements, cost, and supply considerations.
What battery collection and lithium recovery goals does the EU regulation set?
The article reports that the regulation requires producers to collect 63% of waste portable batteries by the end of 2027 and 73% by the end of 2030. It also sets lithium recovery goals of 50% by the end of 2027 and 80% by the end of 2031. Separate collection objectives apply to waste batteries from light means of transport.
What is lithium carbonate equivalent, or LCE?
Lithium carbonate equivalent is a standard way to express the amount of lithium contained in different lithium compounds as an equivalent quantity of lithium carbonate. It helps compare production or supply figures that may otherwise refer to different chemical forms of lithium.
Lugano, Switzerland, August 29, 2023 - TELF AG, a leading international physical commodities trader with over 30 years of experience, has published an article that examines recent developments in the battery materials industry.
Lugano, Ticino, Switzerland, August 30, 2023 -- The article discusses key battery materials industry-related events that occurred in August of 2023.
In the article, TELF AG highlighted Tesla's strategic approach to securing a stable lithium supply by extending its contract with Sichuan Yahua Industrial Group, a prominent Chinese lithium refiner. The original contract, inked in January 2021, included the supply of 63,000 to 88,000 tonnes of lithium hydroxide over a five-year period. In a recent move, Tesla and Sichuan Yahua have agreed to expand this arrangement. It has been reported that between August 2023 and December 2030, Sichuan Yahua will supply Tesla with 207,000 to 301,000 tonnes of lithium hydroxide. This expanded collaboration aligns with Tesla's shift towards in-house cell production, projected to exceed 200 GWh production capacity by 2027.
TELF AG's article also highlights that Sichuan Yahua Industrial Group has partnered with other cell manufacturers, including SK On and LG ES. The refiner's lithium production capacity is expected to experience a substantial increase, growing from 54,000 tons of lithium carbonate equivalent (LCE) in 2022 to an impressive 118,000 tons of LCE by 2027. This represents a 120% increase.
TELF AG's latest recap of the battery materials industry in August 2023 also goes into the European Union's latest regulatory actions to foster sustainable battery production and waste management. According to the publication, the recently ratified battery regulation introduces specific battery collection and recycling targets. Producers are now mandated to achieve a 63% collection rate for waste portable batteries by the end of 2027, a target that escalates to 73% by the end of 2030. Moreover, the regulation introduces precise collection objectives for waste batteries associated with light means of transport, such as electric vehicles with motors of less than 750 watts. It was noted that the regulation sets ambitious targets for recovering valuable materials from waste batteries, including a 50% lithium recovery goal by the end of 2027, which rises to 80% by the end of 2031.
About the company: About TELF AG: TELF AG is a full-service international physical commodities trader with 30 years of experience in the industry. Headquartered in Lugano, Switzerland, the company operates globally, serving customers and providing solutions for commodities producers worldwide. TELF AG works in close partnership with producers to provide effective marketing, financing, and logistics solutions, enabling suppliers to focus on their core activities and access far-reaching markets wherever they may be. Its flexible, customer-focused approach allows TELF AG to create tailor-made solutions for each producer, thereby facilitating long-term partnerships. Additionally, consumers widely recognize them for their operational excellence and reliability.
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At a glance
- Company
- TELF AG
- Location
- Lugano, Ticino, Switzerland
Key figures
- Original lithium hydroxide supply contract
- 63,000 to 88,000 tonnes over a five-year period
- Expanded lithium hydroxide supply
- 207,000 to 301,000 tonnes between August 2023 and December 2030
- Lithium production capacity in 2022
- 54,000 tons of lithium carbonate equivalent (LCE)
- Expected lithium production capacity by 2027
- 118,000 tons of LCE
- Waste portable battery collection targets
- 63% by the end of 2027; 73% by the end of 2030
- Lithium recovery targets
- 50% by the end of 2027; 80% by the end of 2031
People
- Rick De OliveiraContact
