Posted on 18 Jun 2024
Chilean lithium miner SQM announced Monday it has signed a long-term lithium supply agreement with Hyundai and Kia, Kallanish reports.
The South Korean carmakers will be entitled to “a portion” of SQM’s future lithium hydroxide supply for their EV production. Specific details on volume, supply origin and duration weren’t disclosed.
The deal was signed by SQM Salar – a fully owned subsidiary of SQM, which operates in the Atacama salt flats where it extracts lithium from brines.
“This is a clear demonstration that we are doing things right and Hyundai’s and Kia’s confidence in our supply is a strong motivation to continue with our lithium hydroxide expansion plan,” says Felipe Smith, commercial VP of lithium at SQM.
SQM’s lithium hydroxide refinery in Chile has reached a capacity of 40,000 tonnes per year and is set to hit 100,000 t/y in 2025.
The company recently became the sole owner of Dixin, a chemical plant located in China. The facility is undergoing work to convert lithium sulphate from Atacama into battery-grade lithium hydroxide, with 20,000 t/y capacity expected from next year.
Another lithium hydroxide project is the Mt. Holland in Australia, a 50-50 joint venture with Wesfarmers Limited. The plant has a production capacity of 50,000 t/y, with half of it to be available to SQM in 2025.
Source:Kallanish
