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Ganfeng Lithium Co. a leading lithium manufacturer from China agreed to deal with Tesla Inc.

Ganfeng will supply the fifth portion out of its total lithium production to Tesla, as they will use the product for electric vehicle batteries.

Tesla will order its battery supplier to purchase all the required quantity of lithium from Ganfeng Lithium Co. The deal starts from 2018 till 2020 and expected to extend by three years, according to Ganfeng statement.

Tesla and other electric auto-makers are struggling to assure the required supply of lithium for batteries. Because mining companies and investors indicated the probable development in car making industry.

The rapidly growing market roiled in 2018 by cost decrease and future prediction from a few banks that new mining scheme will lead to improving demand growth faster.

Declarations from Ganfeng on plans for its association with Tesla, and additionally battery maker LG Chem Ltd., help flag the nature of its items to potential speculators in front of an arranged first sale of stock in Hong Kong, Nomura Holdings Inc. examiner Jamie Wang said in an email.