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Welcome to Ganfeng Lithium Group Co., Ltd.!(A share code: 002460 | H share code: 01772)
Ganfeng Lithium and BMW signed a "long-term supply agreement" to accelerate the progress of vehicle electrification
Release time:2020-06-28

On December 11, 2019 Beijing time, Ganfeng Lithium released an announcement to disclose the progress of signing a major daily operation contract with BMW of Germany.

According to the announcement, Ganfeng Lithium Industry and its wholly-owned subsidiary Ganfeng International signed a "Long Term Supply Agreement" with BMW of Germany recently, confirming that the company and Ganfeng International will provide Germany with an agreement from 2020 to 2024 (they can be extended afterwards). The variety and specific quantity of lithium chemical products supplied by BMW's designated battery or cathode material suppliers, and the price is adjusted according to market price changes.

This cooperation began on September 28, 2018. Ganfeng Lithium and BMW of Germany signed a "strategic cooperation agreement". This signing further clarified the supply and timing of lithium chemical products.

According to the 2019 semi-annual report, Ganfeng Lithium's overseas revenue accounted for 36.59%, a year-on-year increase of 90.43%, and the pace of internationalization was steady. The signing of this contract deepens the long-term strategic cooperation relationship between Ganfeng Lithium and BMW of Germany, and has a positive impact on the company's future operating results.

In 2016, BMW announced the “New First Strategy”. Under this framework, the layout of the electric vehicle market has become an important part. Former BMW Group Chairman Kruger stated at the "BMW Group #NEXTGen Future Summit" in June this year that BMW will realize the layout of 25 new energy vehicles two years in advance to 2023, of which more than half will be pure electric vehicles. ; By 2021 at the latest, the proportion of electric vehicles in new cars will reach 30%.

The two parties have established a long-term strategic cooperative relationship to meet the demand of German BMW for key lithium raw materials for battery production, and to provide safe supply of key lithium raw materials for the production capacity and cost of BMW's electric vehicles.

In addition to BMW of Germany, Ganfeng Lithium has also signed a "Strategic Cooperation Agreement" with Tesla and a "Memorandum of Strategic Cooperation" with Volkswagen in Germany to provide world-class automotive companies with raw materials for power lithium batteries, accelerate the process of vehicle electrification, and continue to promote The earth is moving in a cleaner direction.

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