OTTAWA (dpa-AFX) - Rock Tech Lithium Inc. (RCK.V), a Canadian lithium development firm, said on Thursday that it has signed a definitive five-year supply deal with Mercedes-Benz Group AG (DDAIF.PK), to supply an average of 10,000 tons of battery-grade lithium hydroxide per year.
German vehicle maker will utilize the raw material to boost its electric vehicles or EVs production.
The five-year term will commence with a preceded qualification period in 2026.
The agreement represents about estimated sales volume of around C$2 billion or 1.5 billion euros and over 40 percent of the expected annual production from Rock Tech's planned converter capacity in Guben, Germany.
The annual volume of lithium hydroxide to be delivered will be sufficient to equip around 150,000 Mercedes-Benz electric cars with premium high-performance batteries, the company said.
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