Gangfeng has just signed a 5 year deal with BMW. What are the...

Gangfeng has just signed a 5 year deal with BMW.  What are the chances Gangfeng will feature heavily in GXY's future offtake/JV deals?  Gangfeng's listing in the HK stock exchange in the coming days should also bring a new level of focus to the lithium sector.

China’s Ganfeng Lithium signs 5-year supply deal with BMW

China’s Ganfeng Lithium has signed a deal to supply lithium to Germany’s BMW for five years, as the luxury carmaker accelerates its transition to electric cars. Ganfeng, which is set to price an IPO in Hong Kong next week, will sell the lithium at market prices and provide as much lithium as Munich-based BMW needs, it said. It’s the latest sign of efforts by global carmakers to secure the raw materials they need to rapidly expand production of electric cars over the next decade. Lithium is a key ingredient for electric car batteries, along with nickel, cobalt and manganese. This month, Ganfeng also said it had signed supply agreements with Tesla. The Jiangxi-based company is hoping to raise $676m in a Hong Kong listing next week. The deal with BMW can be extended by a further three years, Ganfeng said. BMW has said it will source the battery cells it needs from China’s CATL over the next several years, some of which would be manufactured at a new facility in Germany.