(Yicai Global) Nov. 2 -- Ganfeng Lithium’s stock price surged after the Chinese supplier of key raw materials for electric vehicle batteries announced a three-year lithium hydroxide products deal with US carmaker Tesla that it said will fortify their long-term partnership and buoy profit.

After soaring as much as 9.3 percent in Hong Kong earlier today, Ganfeng Lithium [HKG:1772] ended 3.5 percent higher at HKD148.60 (USD19.10). Its Shenzhen-listed shares [SHE:002460] climbed 6.8 percent before closing 4.5 percent up at CNY169.40 (USD26.47) each.

Ganfeng and its unit GFL International will supply battery-grade lithium hydroxide products to Tesla and Tesla Shanghai from next year to 2024, the Jiangxi province-based firm said late yesterday. No contract value or volumes were specified. Gangfeng said they will depend on orders from Tesla and its unit.

The deal follows a five-year agreement to supply Umicore, a Belgian developer of cathode materials used in EV batteries, with battery-grade lithium carbonate and lithium hydroxide monohydrate, which Ganfeng announced on Oct. 15.

Ganfeng has annual output of 81,000 tons of battery-grade lithium hydroxide and 43,000 tons of battery-grade lithium carbonate. It plans to raise its yearly supply capacity of lithium carbonate equivalent products to 200,000 tons by 2025, and reach 600,000 tons in the long term, the firm’s board secretary told investors in early September.

Editor: Futura Costaglione