On 17 June, SQM, one of the world’s largest lithium producer, announced a long-term supply agreement with Hyundai Motors and Kia Corporation. This deal ensures the South Korean automakers secure a portion of their future lithium hydroxide supply from SQM. Financial terms and specific volumes of the agreement were not disclosed.
SQM's current production capacity of lithium hydroxide in Chile stands at 40,000 metric tons annually. The company plans to increase this to 100,000 metric tons by 2025, bolstered by expansions in China and Australia. This agreement follows a recent partnership between SQM and Chilean state-run miner Codelco.
The announcement comes amid a mixed performance in South Korea's automotive market, according to statistics disclosed, with a 25% drop in EV sales during Q1 2024, totaling 25,550 units compared to 34,186 units the previous year. However, hybrid vehicle sales surged by 46% to 99,832 units in the same period. The SQM supply is expected to be IRA-qualified, adding the manufacturers’ advantage in North American market.
Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn
