LG Energy Solution has signed separate partnership agreements with three mineral suppliers in Canada. LGES will purchase cobalt from Electra Battery Materials, and lithium from Snow Lake Resources and Avalon Advanced Materials.
LGES signed a binding term sheet with Electra, which will supply 7,000 tons of cobalt sulfate for three years starting in 2023. Electra is said to be the only supplier capable of refining cobalt sulfate in North America.
LGES also signed non-binding Memorandums of Understanding with Avalon and Snow Lake to secure a supply of lithium. Avalon will supply LGES with 11,000 tons of lithium hydroxide per year for five years initially, starting in 2025. Snow Lake will supply LGES with20,000 tons of lithium hydroxide per year for ten years, once production starts in 2025.
“As we have recently announced our mid- to long-term strategy to focus on North America, the fastest-growing EV market, these partnerships serve as a crucial step towards securing a stable key raw material supply chain in the region,” said Youngsoo Kwon, CEO of LG Energy Solution. “By constantly investing in upstream suppliers and establishing strategic partnerships with major suppliers of critical minerals, LGES will continue to ensure the steady delivery of our products.”
LGES has been moving aggressively to secure lithium supplies in North America and elsewhere. Earlier this year, LGES signed a non-binding MoU with Compass Minerals for lithium carbonate and lithium hydroxide, and signed a binding term sheet with Canada’s Sigma Lithium for the supply of battery-grade lithium. The company also made two off-take agreements with Australia’s Liontown Resources (spodumene concentrate) and Germany’s Vulcan Energy Resources (battery-grade lithium chemicals), and signed a non-binding MoU with SQM of Chile to develop joint investment projects.
Source: LG Energy Solution