SQM - SQM secures lithium supply deal to LG Energy

Sociedad Química y Minera (SQM) +1.5% pre-market after saying it signed a long-term agreement with LG Energy Solutions to supply lithium products for use in electric vehicle battery cells.SQM says the contract will run for eight years through 2029 and involves the supply of ~55K metric tons of lithium carbonate equivalent.Lithium companies have been raising production in anticipation of a flood of demand from automakers in the coming years, and SQM has said it plans to increase its capacity of lithium carbonate and lithium hydroxide to 180K and 30K metric tons, respectively, by 2023.SQM shares have gained 77% YTD and have been bumping along near 52-week highs for the past month.

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SQM secures lithium supply deal to LG Energy