..no, you have to see the bigger picture of this transaction
..I think CATL is helping Yahua in several respects:
1) By agreeing to a long term price that can sustain Yahua in terms of operational cash flows and keep its factory operating
2) Via a 3 year contract, Yahua could appease its bankers over any existing loan agreements
3) It is protecting the domestic lithium supply ecosystem which is key to the larger China global EV
agenda [ starving a Chinese plant from going under is reducing the risk of China becoming more dependent on Western sources of lithium, in a bipolar geopolitical trading environment ]
and obviously a win-win arrangement with Yahua as a price taker.
SMM: #Yahua agrees to sell #lithium salts to #CATL for a total annual amount of 1.05B CNY, from 2026 to 2028. Since we know Yahua will be producing 100ktpa Li salts beginning 2025, 11% would imply 11ktpa & a price of $12,841/t. Doubt that low price will prevail by then.
