Huayou and CNGR to supply triple precursors until 2025
Tesla Inc. has renewed long-term contracts with two of its current Chinese battery material suppliers, the automaker’s most recent step to ensure supplies in a market that is becoming more competitive.
The agreements concern chemical concoctions known as triple precursor materials, which are essential for lithium-ion batteries to store electricity.
Shares of Huayou Cobalt and CNGR up more than 9%
Between 2022 and 2025, Tesla will receive materials from CNGR and Huayou Cobalt. According to the corporations, nickel, cobalt, and manganese market prices as well as processing costs will affect product prices.
The transition to cleaner energy is driving up the price of raw materials, which is harming the profitability of certain automakers, and increasing demand for battery components as supply is constrained by logistical problems associated to COVID and a lack of investment.
General Motors C. revealed a list of raw material suppliers, including Argentinean lithium and Indonesian nickel, last week along with deals to buy raw materials ranging from lithium to cathode materials.