LG Energy moves to secure North American supply chain for battery production

The newly enacted Inflation Reduction Act ups the ante for battery suppliers to have North American supply chains.

Battery maker LG Energy Solution signed agreements to secure lithium and cobalt supplies from Snow Lake Resources Ltd., Electra Battery Materials Corp. and Avalon Advanced Materials Inc. 

All three produce the resources in Canada and LG Energy Solution said the agreements align with its vision to reinforce its battery materials supply chain in North America.

Under terms of one of the agreements, Electra will supply 7,000 tons of cobalt sulfate for three years starting in 2023.

In addition, two non-binding memorandums of understanding with Avalon and Snow Lake were signed. Avalon would supply 11,000 tons of lithium hydroxide each year for five years, starting in 2025. Snow Lake would supply 20,000 tons of lithium hydroxide each year for 10 years once production starts, expected in 2025.

“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. The company said the recently passed Inflation Reduction Act underscores the importance of EV battery components manufactured or assembled in North America. The law has “further stressed the significance of battery manufacturers’ establishing local supply chain” within North America, it said.

Earlier this year, LG Energy Solution signed a non-binding MoU with Compass Minerals for North American-produced lithium carbonate and lithium hydroxide. It also signed a binding term sheet with Canada’s Sigma Lithium for the supply of battery-grade lithium.

The company also struck two offtake agreements with Australia’s Liontown Resources Limited (for spodumene concentrate) and Germany’s Vulcan Energy Resources Ltd. (for battery-grade lithium chemicals), and signed a non-binding MoU with SQM of Chile to explore joint investment projects related to the electro-mobility industry value chain.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.