LG Ensol secures large-scale supply of core materials for electric vehicle batteries in North America

LG Energy Solutions has secured a large supply of core materials for secondary batteries. It responds to the North American electric vehicle battery market as a stepping stone for the US Inflation Reduction Act (IRA).

LG Energy Solutions announced that it has signed a mid- to long-term supply contract with Canada’s Electra, Avalon, and Snowlake for cobalt sulfate and lithium hydroxide.

LG Energy Solution will receive 7,000 tons of cobalt sulfate from Electra for three years from next year. Avalon and Snowlake agreed to supply 55,000 tons and 200,000 tons of lithium hydroxide, respectively. The supply is secured by 2030. Cobalt sulfate and lithium hydroxide are key materials for high-performance electric vehicle batteries.

LG Energy Solutions is making large-scale supply contracts with battery mining and processing companies to target the North American market. According to the IRA, main materials for batteries must be supplied from North America and from countries that have signed free trade agreements (FTAs) with the United States from 2024.

LG Energy Solutions is the world’s second-largest EV battery maker. It is strengthening its entry into the US market, which is a major market for electric vehicle batteries. To this end, it signed a business agreement with Compass Mineral, a US lithium producer, to supply lithium carbonate and lithium hydroxide. It has agreed to receive 40% of lithium carbonate and lithium hydroxide.

“This supply contract is to establish a stable raw material supply chain in the North American market,” said Kwon Young-soo, CEO of LG Energy Solutions. We will do our best to become the most reliable company for our customers.”

LG Energy Solutions is building a business environment to receive a stable supply of materials in response to a surge in material prices for secondary batteries. △Germany Vulcan Energy and 45,000 tons of lithium hydroxide for 5 years △Liontown in Australia and 700,000 tons of lithium concentrate for 5 years △Sigma Lithium in Canada and 690,000 tons of lithium concentrate for 6 years △SQM in Chile to supply 55,000 tons of lithium hydroxide and carbonate for 9 years We have secured mid- to long-term suppliers through cooperation with various overseas mining companies, such as signing contracts.

By Kim Ji-woong [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *