The Chilean Chemical and Mining Society (SQM), one of the world's largest lithium producers, will supply lithium hydroxide to the British firm Johnson Matthey, at least until 2028, according to a new contract signed on Monday, it was announced.
With this new deal, both companies signed seek to ensure the supply of light metal given the expected increase in demand in the coming years, due to the development of electromobility.
The agreement between the companies contemplates the supply of lithium necessary for some 500,000 fully electric cars, SQM said in a statement. Thus, the component will be used in the production of electric batteries in plants located in Finland and Poland.
SQM CEO Ricardo Ramos explained this project is directly linked to the company's expansion plan to produce 180,000 and 30,000 metric tons of lithium carbonate and lithium hydroxide, respectively concurrently with our efforts to reduce our environmental footprint, by cutting our brine extraction and water consumption in half by 2030.
Johnson Matthey's head of battery materials Christian Günther highlighted that the agreement strengthens the relationship between the firms, ensuring security in the supply chain and traceability in a key material for customers.