Yahua Terminates Finniss Lithium Offtake Deal with Core Lithium Following Project Suspension

Yahua Lithium

Chinese lithium producer Yahua terminated its spodumene offtake agreement with Australia's Core Lithium for the suspended Finniss project operations. The Yahua Finniss lithium deal termination follows Core Lithium's decision to halt operations at the Australian project in July 2024. Core Lithium agreed to pay Yahua a $2 million settlement to resolve the contractual obligations under the original 2019 offtake agreement for the Yahua Finniss lithium supply arrangement.

Original Offtake Agreement Targeted 75,000 Tonnes Annual Spodumene Supply

The terminated offtake agreement required Yahua to purchase at least 75,000 metric tonnes per year of spodumene concentrate from Core Lithium's Finniss project. The parties signed this long-term supply contract in 2019 when lithium market fundamentals appeared more favorable for Australian project development. However, the Finniss project faced operational challenges and market headwinds that ultimately led to the suspension of mining activities.

Core Lithium's decision to halt operations reflects broader challenges facing Australian lithium projects amid volatile pricing and operational complexities. The $2 million settlement payment compensates Yahua for the terminated supply relationship while releasing both parties from future contractual obligations. Meanwhile, the Yahua Finniss lithium deal termination demonstrates the risks facing long-term offtake agreements when projects encounter operational difficulties.

Diversified Supply Strategy Shields Yahua from Feedstock Disruption

Yahua emphasized that the Finniss project termination will not affect its lithium feedstock supply security due to diversified sourcing strategies. The Chinese lithium producer owns the Kamativi lithium assets in Zimbabwe, providing direct control over spodumene production and processing operations. As a result, this backward integration strategy reduces Yahua's dependence on third-party Australian suppliers for critical lithium raw materials.

The company maintains additional supply agreements with established lithium miners including Australia's Pilbara Minerals and other global producers. These diversified supply relationships ensure consistent feedstock availability despite individual project disruptions or market volatility. Therefore, Yahua's multi-sourced approach provides operational flexibility and supply chain resilience across different geographic regions and mining operations.

Yahua's response to the Finniss project termination highlights the importance of supply diversification in the volatile lithium market. Chinese lithium processors increasingly pursue backward integration strategies and multiple supplier relationships to manage supply risks. Consequently, the Yahua Finniss lithium deal termination reinforces the strategic value of diversified sourcing approaches for lithium chemical producers.

The Metalnomist Commentary

The Yahua-Core Lithium offtake termination illustrates the fragility of long-term supply agreements in volatile commodity markets, particularly for emerging lithium projects facing operational and financial pressures. Yahua's emphasis on supply diversification through asset ownership and multiple supplier relationships reflects the evolving risk management strategies of Chinese lithium processors seeking to secure feedstock supplies amid market uncertainty and project development challenges.

Yahua LGES Morocco Lithium Refinery: $612mn push to scale EV materials

LGES

Yahua and LGES advanced the Yahua LGES Morocco lithium refinery to secure battery-grade supply. The partners will invest $612mn in phase one. As a result, the Yahua LGES Morocco lithium refinery targets 90,000 t/yr of lithium salts at nameplate. The project underscores how the Yahua LGES Morocco lithium refinery can regionalize cathode supply chains.

Phase-one scope and capacity

The companies will build 30,000 t/yr in the first phase. Ultimately, the refinery will reach 90,000 t/yr of lithium salts. However, they did not disclose construction or launch dates. Yahua already agreed in 2023 to supply LG Chem 30,000t of lithium hydroxide over 2023–26. Therefore, the project complements existing offtake frameworks.

Why Morocco for lithium refining

Morocco offers FTA access to the US and strong industrial logistics. Meanwhile, abundant phosphate resources support LFP battery ecosystems. Chinese peers CNGR, BTR, and Huayou are also investing there. The country aims to produce 1mn vehicles in 2025, including 107,000 EVs. Consequently, local demand and export channels can anchor long-term utilization.

Morocco continues to attract upstream-to-midstream capital. As a result, LGES strengthens diversification beyond China while keeping cost discipline. The refinery also aligns with OEM sourcing strategies under evolving trade rules. Battery makers increasingly localize key steps to manage tariff and compliance risks.

The Metalnomist Commentary

The Morocco siting checks three boxes: FTA optionality, phosphate adjacency, and maturing auto clusters. Watch for feedstock strategy and conversion mix between carbonate and hydroxide. Clear timelines and ESG disclosures will determine bankability and pace.

Tesla Launches Texas Lithium Hydroxide Refinery: A Game Changer for EV Battery Production

Tesla Lithium Hydroxide Refinery

Tesla has officially begun operations at its lithium hydroxide refinery in Texas, marking a significant step in the company’s strategy to control its supply chain for critical battery materials. Located near Corpus Christi, the new facility aims to process lithium at scale, securing Tesla’s position as a major player in the electric vehicle (EV) market and ensuring a more stable supply of this vital element.

Tesla’s Vision for Lithium Refining at Scale

Following the groundbreaking of the facility in May 2024, Tesla has now successfully processed raw materials through its kiln. This refinery is a pivotal part of Tesla's plan to reduce its reliance on third-party suppliers and mitigate the effects of skyrocketing lithium prices. Tesla’s CEO, Elon Musk, emphasized that while lithium is abundant globally, the slow pace of extraction and refinement has created a bottleneck. The Texas refinery is designed to address this challenge by processing lithium more efficiently and directly at scale.

The facility is capable of refining lithium hydroxide, a key component in EV battery production. Tesla's refinery will primarily process spodumene concentrate, the most common raw material used to produce lithium hydroxide. However, the company has also announced plans to process recycled batteries and manufacturing scrap at the facility in the future, which would further enhance the sustainability and efficiency of its operations.

Advanced Refining Technology and Sustainable Practices

One of the most notable features of Tesla's new refinery is its acid-free lithium refining method, which reduces environmental impact compared to traditional refining techniques. The byproduct of this process—comprising sand and limestone—can be used in construction materials, further contributing to the sustainability goals of Tesla’s operations.

The refinery has a projected capacity of 50 GWh/yr, though Tesla has not disclosed a specific timeline for ramping up to full production capacity. The company’s efforts to diversify its lithium supply chain are also evident in its sourcing strategy. In 2023, Tesla sourced over 75% of its lithium from mining and refining companies, including industry giants such as Albemarle, Acradium, Ganfeng, and Yahua.

Implications for the EV Industry and Lithium Supply Chain

Tesla’s Texas lithium refinery represents a critical move in the global shift toward more sustainable and efficient lithium extraction. As demand for electric vehicles continues to surge, securing a stable and cost-effective supply of lithium is paramount. This refinery could serve as a model for other manufacturers looking to mitigate risks associated with lithium shortages and price volatility.

While Tesla has yet to provide full details on the ramp-up timeline, the opening of this facility signals the company’s ongoing commitment to innovating within the energy and automotive sectors, ensuring that it remains a leader in the electric vehicle industry.

Ganfeng Lithium Begins Production of Spodumene Concentrate at Goulamina Mine in Mali

Ganfeng Lithium

Ganfeng Lithium, one of the world's leading producers of lithium, has officially started producing spodumene concentrate at its Goulamina lithium mine in Mali. This marks a significant step in the development of the mine, which is being constructed in two phases. The first phase, which began in 2022, has a production capacity of 506,000 tonnes per year (t/yr) of spodumene concentrate, with commercial production starting on December 15, 2024. The second phase, when completed, will raise the total capacity to 1 million t/yr.

Goulamina Lithium Mine: A Major Step for Ganfeng's Global Lithium Supply

The Goulamina project is one of Ganfeng's key international investments, located in Mali, a country that is becoming increasingly significant in the global lithium supply chain. The mine has a total resource base of 7.14 million tonnes (mn t) of lithium carbonate equivalent (LCE), with an average grade of 1.37% lithium oxide (Li2O), a quality that positions it as a key source of lithium in the coming years.

As part of its development, Ganfeng has announced that its wholly owned subsidiary Lithium du Mali SA (LMSA) holds a 100% stake in the project. However, in a move to strengthen its relationship with the host nation, Ganfeng will transfer a 35% stake in LMSA to the Mali government. This will see the government receive 10% of the stake for free, while the remaining 25% will be acquired for approximately $32 million.

Expanding Ganfeng’s Global Lithium Portfolio

Ganfeng Lithium is investing heavily in lithium extraction from both spodumene ore and brine sources across the globe. In addition to the Goulamina mine, Ganfeng has major operations in Australia, Argentina, Mexico, Ireland, and China. The company is also ramping up its Cauchari-Olaroz project in Argentina, which boasts an annual 40,000 t/yr capacity for lithium carbonate production.

The move to secure assets in Africa is part of a broader trend among Chinese lithium producers, who are increasingly looking to diversify their supply chains. Companies such as Huayou, Sinomine, Chengxin, and Yahua have been sending shipments from their Zimbabwe-based mines to lithium refineries in China, highlighting the growing importance of African countries as key players in the global lithium market.

Strategic Implications for Global Lithium Markets

Ganfeng’s investment in Mali and its expanding operations across Africa signal an ongoing shift in the global lithium mining landscape, with Chinese firms increasingly focusing on securing access to critical resources outside traditional markets like Australia and South America. As demand for lithium continues to surge, driven by the rapid growth of electric vehicles (EVs) and renewable energy storage solutions, these strategic moves will play a pivotal role in shaping the future of the lithium supply chain.

Atlas Lithium Granted Permits for Brazil Refinery Plant Expansion

Atlas Lithium

Atlas Lithium, a prominent U.S.-based lithium producer, has secured key permits from the state of Minas Gerais, Brazil, to build and operate its lithium refinery. This significant step comes as part of Atlas's ambitious expansion plan to scale up lithium concentrate production by mid-2025. With an expected production capacity of 300,000 tons per year, the refinery will process ore extracted from one of Atlas's deposits, significantly boosting the company's position in the global lithium market.

The permit approval encompasses 85 mineral rights spread across approximately 468 square kilometers in the Brazilian states of Neves, Coronel Murta, Eastern Properties, Itinga, Salinas, Santa Clara, and Tesouras. This extensive area is critical for securing the long-term supply of lithium, a key component in the production of electric vehicle batteries and energy storage solutions.

"We are thrilled with today's announcement, as permitting is widely considered the most critical risk in any mining project," said Marc Fogassa, CEO of Atlas Lithium. This announcement marks a key milestone in the company's strategy to meet the increasing demand for lithium, which has surged due to the growth of the electric vehicle and renewable energy sectors.

Strategic Partnerships for Global Lithium Supply

Atlas Lithium has secured offtake agreements with leading international companies, including Mitsui, a major Japanese trading house, as well as Chengxin Lithium Group and Yahua Industrial Group from China. These partnerships are crucial for Atlas to ensure its lithium concentrate reaches global markets, as demand for the metal continues to rise.

Lithium is an essential mineral for the production of batteries used in electric vehicles (EVs), consumer electronics, and large-scale energy storage systems, making Atlas’s production expansion pivotal in the global energy transition. The strategic collaborations with Mitsui and Chinese firms underscore the importance of securing supply chains and meeting global demand for critical raw materials.