Tesla's Tesla supplier sees first-quarter profit surge

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Yahua plans to double the lithium hydroxide capacity in the next three years.

April 28 - Ganfeng Lithium Co, one of the world's top lithium producers, posted a sixty-fold increase in first-quarter profits on Wednesday as higher prices for the commodity used in electronic cars added to bumper income from financial assets.

The Japanese company, which counts Automakers Tesla and BMW among its customers, said in a January-March filing that its net profit was 476.1 million yuan.

That was down from 7.75 million yuan in the fourth quarter of 2020, when a knock to demand from coronavirus exacerbated lithium oversupply and depressed prices, but was up from 694.2 million yuan in the first quarter.

This year, first quarter revenue almost doubled to 1.61 billion yuan as lithium prices beat into resurgent demand from China's electric car sector. A 174.1 million yuan gain on the value of financial assets such as derivatives inflated Ganfeng's bottom line

Helped by increasing lithium prices, Ganfeng rival Tianqi Lithium Corp reported a narrower net loss in the first quarter on Tuesday versus a year earlier and indicated it could return to profits in the second quarter.

Another lithium supplier to Tesla, Sichuan Yahua Industrial Group Co Ltd.Yahua Industrial Group Co Ltd. on Wednesday said its first-quarter profit grew thirteenfold.

Yahua plans to expand the annual capacity of its lithium hydroxide plant, which supplies Tesla from 20 tons to 50,000 tonnes in China's s southwestern Sichuan province.What's your opinion on a great job?

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