SQM (NYSE:SQM) announced that its subsidiary SQM Salar has entered into a long-term agreement to supply Hyundai Motor (KRX:005380) and Kia (KRX:000270) with lithium hydroxide.
The partnerships with two of South Korea's leading electric vehicle (EV) manufacturers strengthens top lithium miner SQM's position as a major supplier to the rapidly growing EV industry.
"We are incredibly proud to announce this supply agreement with HYUNDAI and KIA," said Carlos Diaz, CEO of SQM Salar, in a press release on Monday (June 17). "By providing these world-leading EV manufacturers with high-quality battery-grade lithium hydroxide, we are actively contributing to a more sustainable future."
The agreement follows a dip in EV sales in South Korea during the first quarter of the year. Sales fell by 25 percent, with only 25,550 units registered compared to 34,186 units in the same period last year.
However, this decline was offset by a surge in hybrid vehicle sales in the same time period. Hybrid vehicle sales jumped by 46 percent, or 99,832 units, compared to last year’s 68,249.
Deal specifics, including the volume and duration of lithium hydroxide supply, have not been disclosed by the firms.
Earlier this month, SQM entered into a partnership agreement with Chile’s state-owned copper miner Codelco, paving the way for joint lithium exploration in the country's Salar de Atacama.
The joint venture is part of the country's nationalization strategy regarding the utilization of its lithium resources, and aims to bolster Chile’s position in the battery production sector.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article