SMM, Sept. 25: Tianqi Lithium, one of the world's largest lithium producers, said Tuesday that its Australian subsidiary has signed a long-term supply agreement with Swedish battery maker Northvolt. Tianqi Lithium Corvina, which recently set up a processing plant in western Australia, will supply lithium hydroxide to Northvolt in 2020-25, Tianqi Lithium said in a document filed with the Shenzhen Stock Exchange. Northvolt Europe's largest plant will begin production in 2021, with German carmakers Volkswagen and BMW one of its investors.
The document does not give specific tonnage figures for the deal, but it is understood that Tianqi lithium will supply no less than 610 per cent of its annual capacity. The deal is Tianqi Lithium's second important customer in more than a month. Tianqi Lithium announced on Aug. 22 that it had signed a three-year contract with South Korea's LG Chemical Company covering 2020-22, with a contract volume of not less than 15% of Kwinana's annual production capacity.
Tianqi Lithium Corvina began producing lithium hydroxide this month and its first phase of production will reach 24000 tons per year in the next 12-18 months. Capacity in the second phase will double to 48000 tonnes, but Tianqi has been suspended until the first phase of the upgrade is completed as lithium prices remain low. In a wave of new supply and adjustment of Chinese economic subsidies, lithium hydroxide prices have fallen 36.8 per cent this year, and Tianqi lithium has begun to adjust its production plans.
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