Shenzhen-listed Tianqi Lithium recently announced that its wholly-owned Chengdu-based subsidiary has signed a long-term supply agreement with LG Chem.

According to Tianqi Lithium's announcement released on 28 June, Chengdu Tianqi Lithium will sell lithium hydroxide monohydrate to LG Chem from 1 January, 2023, to 31 December, 2026, Kallanish learns. 

The detailed supply quantity and prices haven't been disclosed officially.

According to Tianqi Lithium, the parties agreed that within six months prior to the end of the term of this contract, they may jointly negotiate an extension of the term of this contract for a further three years, as well as the applicable price and pricing mechanism during the new term.

Tianqi Lithium says: "The signing of this contract is beneficial for the establishment of a long-term cooperative relationship, indicating the recognition of the quality and production capacity of our lithium compound product."

During 2019-2021, the accumulated transaction amount between LG Chem and Tianqi Lithium took about 1.57% of Tianqi Lithium's total sales during the same period.