Oct 15 (Reuters) - Belgian materials technology and recycling group Umicore UMI.BR on Friday signed long-term lithium supply deals with Ganfeng Lithium Co Ltd 002460.SZ and Vulcan Energy Resources VUL.AX , expanding its capabilities to supply the metal as demand for electric-vehicle batteries has been rising.
Lithium is needed in the production of cathode materials used in lithium-ion batteries for electric vehicles.
"With the transitioning to electromobility accelerating in key regions, these long-term agreements will provide Umicore with additional sustainable and regional supply of this key raw material to meet the growing demand for cathode materials of its global automotive customers," Umicore said in a statement. ()
Umicore said both contracts are for five years and can be extended upon mutual agreement.
The deal with China's Ganfeng concerns the supply of lithium starting 2022 and will cover a significant part of Umicore's lithium requirements in Asia, the company said in a statement.
The agreement with German-Australian lithium miner Vulcan will take effect as of 2025. It will cover part of Umicore's lithium hydroxide needs in Europe, allowing it to buy between 28,000 tons and 42,000 tons over the duration of the contract.
Vulcan has previously signed deals to supply lithium to automakers including Renault SA RENA.PA and Stellantis NV
STLA.MI . ()
(Reporting by Arunima Kumar in Bengaluru; Editing by Vinay Dwivedi)
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