China’s Ganfeng Lithium Co ($GNENF@China) and its GFL International have signed a 3-year deal with Tesla to provide the EV maker with battery-grade lithium products. While Tesla is one of the largest carmakers in the world—and a leading EV maker—it is constantly in need of better battery products. As part of the deal, Tesla will have batteries for the next 3 years starting in 2022, potentially for a new factory in Germany. The Gigafactory in Berlin-Brandenburg should open this year, says Tesla CEO Elon Musk, despite issues with regulators and a frosty reception from the German locals. The terms of the deal were not disclosed, but this deal follows strong results for Ganfeng. The company has seen its earnings soar this year, with 3rd quarter profits up 507% and year-to-date profits up 648%. Ganfeng has rising lithium prices to thank along with the demand from more than just Tesla. The company also announced a massive investment of over $1 billion in two related battery projects back in August. Ganfeng shares are up 60% this year, and they rose to just over $25 per share on Monday. Tesla stock, for its part, rose nearly 3 and a half percent to surpass $1110 per share.
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