(Yicai) Jan. 11 -- Shares of Chengxin Lithium Group inched up after the Chinese lithium ore developer and lithium salt processor said it signed a long-term supply deal with South Korean automaker Hyundai Motor.

Chengxin Lithium [SHE: 002240] was trading up 1 percent at CNY22.11 (USD3.11) as of lunch break in Shenzhen today. The stock fell 38 percent last year.

Chengxin Lithium will supply lithium hydroxide, one of the main raw materials to make cathodes for ternary lithium batteries, to Hyundai in the next four years, the Shenzhen-based company announced yesterday. Moreover, the pair will form a long-term partnership on the supply of raw materials to make lithium batteries.

The supply quantity and price will be subject to purchase orders agreed upon by the two companies, Chengxin Lithium added, without revealing any further details about the deal.

Chengxin Lithium has lithium ore development projects in China, Zimbabwe, and Argentina, owns lithium salt processing plants in western China, and is building another one in Indonesia, which is scheduled to be completed in the first half of this year.

Chinese battery makers BYD and Contemporary Amperex Technology, as well as foreign firms LG Chem, SK On, and Posco Chemical, are among the main clients purchasing lithium salt products from Chengxin Lithium, according to the company’s website.

Editor: Futura Costaglione