Tesla Buys More And More Lithium In China

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Tesla Buys More And More Lithium In China

With this deal, Tesla has procured up to 88,000 tonnes of Lithium Hydroxide.


News has come out of China that Sichuan Yahua Industrial Group Co Ltd has signed a deal to supply battery-grade lithium to U.S. electric vehicle (EV) manufacturer Tesla Inc for the next five years.

Sichuan Yahua Industrial Group said that its subsidiary, Yaan Lithium, has signed a deal with Tesla at $630-$880 million over 2021 to 2025, as confirmed by the Shenzhen Stock Exchange.

Apparently, according to an analyst from Daiwa Capital Markets, the total lithium hydroxide procurement comes to around 63,000-88,000 tonnes. 

Tesla earlier this year had already sourced lithium from China's Ganfeng Lithium, one of the world's biggest producers of the commodity. 

Tesla Gigafactory China

The Yahua deal underscores Tesla's "huge demand" for battery-grade lithium hydroxide, "particularly given the ramping-up of Model Y production" in Shanghai, the Daiwa analysts wrote in a note.

It appears the demand for Tesla's Model Y has exceeded expectations, as last month, the American EV manufacturer secured permission to start selling the Model Y sports utility vehicle in China.



Adam Aubrey

Adam Aubrey

Content Producer

Wants to live the simple life, especially when it comes to cars and bikes. That's what tech is for he reckons, to make motoring simpler


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