Silkroad Nickel and Ganfeng Lithium cooperate to develop Electric vehicle and reach Nickel supply Agreement

Nickel ore producer Silkroad Nickel has signed an exclusive terms with lithium compound maker Ganfeng Lithium to develop the growing (EV) industry for electric vehicles, it has been reported. The company said it would benefit from the booming trend of electric vehicles in the region through a strong collaborative relationship with Ganfeng Lithium.

Silkroad Nickel said it would ensure the availability of raw materials through laterite ores from its mines, which contain nickel and cobalt, two key metal components used in the production of lithium-ion batteries. In turn, Ganfeng Lithium Power will have the confidence to enter the Southeast Asian market and work with Silkroad Nickel to expand its growing business in the electric vehicle industry.

Ganfeng Lithium will sign a 10-year off-take contract with PT ATS to supply the nickel mine at a market price of at least 1 million tons per year, with the option of adding an additional 500000 tons per year and extending the off-take contract for another five years. "the group foresees many mutually beneficial and synergy opportunities for this partnership and sees it as a step towards becoming a vertically integrated nickel-cobalt supplier and processor of electric vehicles," Silkroad Nickel said in its stock exchange filing.

Hong Kah Ing, Executive Director and CEO of Silkroad Nickel, said, "We are pleased to announce and begin an exclusive partnership with Ganfeng Lithium, the global leader in lithium-ion batteries and electric vehicles. With the accelerated growth in demand for EV, Indonesia has become a major player in the global electric vehicle ecosystem worldwide, and we are pleased to be part of this exciting supply chain. "