Shenzhen-listed Sichuan Yahua Industrial Group said on Wednesday it has extended and adjusted its battery-grade lithium hydroxide supply deal with US automaker Tesla, Kallanish reports. 

According to a stock exchange announcement, on 31 July, the two companies signed an amended deal restating a battery raw material production pricing agreement.

The supply period previously set from 2021 to 2025 was extended to the end of 2030, effective on 1 August 2023. During the new supply period, the offtake volume will total about 207,000-301,000 tonnes.

Following the announcement, Yahua’s stock price increased 1.45% during the day. 

Yahua believes the agreement will have a positive impact on its financial results and operating performance in 2023-2030. The deal is worth roughly $7.2-10.46 billion based on the current price of Chinese battery-grade lithium carbonate, which stands at around CNY 250,000 ($34,760)/t.

According to Yahua’s 2022 financial report, Tesla bought CNY 2.4 billion worth of battery-grade lithium hydroxide from the company last year, accounting for 17% of its total revenue. 

Yahua also announced a battery-grade lithium hydroxide supply deal with battery giant CATL. The contract period is from 1 August 2023 until the end of 2025. During this period, CATL is expected to purchase about 41,000 t battery-grade lithium hydroxide from Yahua’s subsidiary Ya’an Lithium.