On Monday, June 17, 2024, Hyundai Motor Group brands, Hyundai Motors Companyand Kia Corporation, signed a lithium supply agreement with Chilean miner SQM Salar S.A.
SQM Salar S.A. is a fully owned subsidiary of Socedad Quimaica y Miners de Chile S.A. According to the lithium supply agreement, Hyundai and Kia have secured a portion of SQM’s lithium hydroxide supply for electric vehicle production.
“We are very proud to announce this supply agreement for high-quality battery-grade lithium hydroxide with world-leading electric vehicle producers like Hyundai and Kia, contributing to a cleaner world,” commented Carlos Díaz, CEO of SQM.
Based on SQM’s first-quarter results, the Chilean miner has the capacity to supply 40,000 metric tons of lithium hydroxide per year. It plans to boost output in Chile by up to 100,000 tons in 2025. SQM also aims to increase capacity in China and Australia.
Hyundai and Kia’s deal with the Chilean miner hints that it is building a solid supply chain near North America. Hyundai Motor Group has also started reducing its reliance on China and broadening its supply chains worldwide.
The two Hyundai Motor Group brands have recently made great strides in the United States electric vehicle (EV) market. Last month, Hyundai and Kia reduced the gap between themselves and Tesla by 33%.
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