(Bloomberg) -- Ganfeng Lithium Co. won a deal to supply Tesla Inc. with lithium products for three years, enabling the car-maker to lock in crucial supplies as prices for battery metals surge.
The Chinese company will provide battery grade lithium hydroxide products to the electric-vehicle maker from 2022 to 2024, according to a statement. Ganfeng didn't give a value for the contract in the filing.
The new deal comes as Tesla enjoys booming orders that have sent its shares surging and helped founder Elon Musk extend his lead as the world's richest person. With the adoption of electric-vehicles gaining traction globally, analysts expect key battery raw materials including lithium and cobalt to extend this year's gains as the race for new supply heats up.
Global lithium consumption is projected to grow fivefold by end of this decade, according to BloombergNEF. Tightening supplies are sparking a wave of dealmaking among lithium miners, with Ganfeng and other producers involved in a flurry of acquisitions in recent months.
Ganfeng signed a three-year deal with Tesla in 2018 to supply a fifth of its production to the vehicle maker. China's largest lithium miner didn't disclose details on sales volumes as the new agreement was announced on Monday.
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