LG Energy Solution Secures 80,000 Tons of Lithium Carbonate in U.S., Strengthens North American Supply Chain
TECHWORLD ·
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LG Energy Solution has signed a long-term supply agreement with U.S. lithium developer Smackover Lithium.
Smackover Lithium will supply 80,000 tons of lithium carbonate over 10 years starting in 2029, with the volume to be produced at the Southwest Arkansas Project in Arkansas, U.S.
LG Energy Solution described the deal as a move to respond to growth in the North American ESS market, rising demand for LFP batteries, and the need to secure raw material supply chains.
LG Energy Solution has moved to secure long-term lithium carbonate supplies in the United States. The move is intended to strengthen its North American supply chain and ensure a stable procurement of lithium carbonate, a key battery raw material.
LG Energy Solution said on the 1st that it had signed a long-term supply agreement with U.S. lithium developer Smackover Lithium. Under the deal, the company will receive 80,000 tons of lithium carbonate over 10 years starting in 2029, when Smackover Lithium begins mass production.
The volume covered by the contract is enough to produce about 1.8 million high-performance electric vehicles capable of traveling more than 500 km on a single charge. Smackover Lithium is a joint venture established by U.S. Standard Lithium and Norwegian state-owned energy company Equinor.
The supply will come from the Southwest Arkansas Project in Arkansas. Direct lithium extraction, or DLE, technology is expected to be applied to the project to reduce carbon emissions.
The deal was pursued to respond to growth in the North American ESS market, rising demand for LFP batteries, and the need to secure raw material supply chains. Lithium carbonate is a key raw material used both for cathode materials in LFP batteries and for cathode materials in ternary batteries.
Accordingly, LG Energy Solution has set a policy of securing long-term local suppliers in the United States to respond to rising demand. Through the agreement, the company expects to strengthen links between its operating battery production facilities in North America and local raw material supply chains, and to expand its local supply network from raw material procurement to battery production.
LG Energy Solution operates 8 battery production facilities in North America. The agreement is also being pursued to strengthen the local supply chain connected to these production sites.
At the same time, LG Energy Solution is diversifying its global lithium supply sources and expanding its raw material procurement base. It has signed a long-term supply agreement with SQM in Chile for 100,000 tons of lithium hydroxide and lithium carbonate, and a supply agreement with Australia's Liontown for 1.75 million tons of lithium concentrate.
Lee Kang-yul, executive vice president and head of LG Energy Solution's purchasing center, said the partnership with Smackover Lithium secured key minerals for eco-friendly production in North American strategic markets, improving supply chain stability. He added that the company plans to provide competitive and sustainable products based on local production in the United States and local raw material procurement.
Source: TECHWORLD · Kim Seung-gi
Original: https://www.epnc.co.kr/news/articleView.html?idxno=406304
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Source: TECHWORLD
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