LG Energy Solution Signs Supply Deal With Elevra Lithium, Secures 240,000 Tons of North American Lithium
TECHWORLD ·
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LG Energy Solution has signed a long-term supply agreement with Elevra Lithium.
Under the deal, it has secured 240,000 tons of Canadian lithium concentrate, with supplies set to begin at the end of this year and continue for 4 years.
The secured volume will be produced at the NAL lithium mine in Quebec, Canada, and the company said it is equivalent to about 30,000 tons on a lithium hydroxide basis.
LG Energy Solution announced on the 8th that it has signed a long-term supply agreement with Elevra Lithium. Under the deal, LG Energy Solution has secured 240,000 tons of Canadian lithium concentrate. Supplies are set to begin at the end of this year and will continue for 4 years.
The supplied material will come from the NAL lithium mine in Quebec, Canada. Elevra Lithium operates the NAL mine. LG Energy Solution said the deal volume would be equivalent to about 30,000 tons when converted on a lithium hydroxide basis, enough to produce batteries for about 700,000 high-performance electric vehicles.
LG Energy Solution plans to secure lithium concentrate at the raw-material stage. The goal is to gain flexibility in responding to changes in demand for refined inputs such as lithium carbonate and lithium hydroxide. Lithium concentrate is a material made by processing and concentrating lithium ore, and it is used to produce lithium carbonate or lithium hydroxide through refining.
Lithium carbonate is used in lithium iron phosphate (LFP) and ternary batteries. Lithium hydroxide is used in high-nickel ternary batteries for high performance. Through long-term contracts with North American producers, LG Energy Solution is pre-securing Canadian lithium concentrate and seeking to respond to future shifts in demand for lithium carbonate and lithium hydroxide based on sourcing at the concentrate stage.
The latest deal is part of LG Energy Solution's drive to strengthen links in its North American supply chain spanning raw materials, materials, and battery production. The company is pursuing a plan to connect Canadian raw materials with local production bases and intends to link the Canadian lithium raw materials it has secured with production sites in Canada and the U.S. This follows LG Energy Solution's policy of reinforcing a North American supply chain running from raw materials to battery production.
The company is targeting demand in the electric vehicle and energy storage system (ESS) markets. LG Energy Solution operates 3 standalone production bases in North America: the Lansing plant in Michigan, the Holland plant, and the NextStar Energy plant in Ontario, Canada. It also has the L-H Battery Company Ohio plant, a joint venture with Honda, as well as the Ultium Cells Tennessee plant, a joint venture with GM.
LG Energy Solution is also expanding its ESS production base. NextStar Energy in Windsor, Canada, began mass production of batteries for ESS last November. The company plans to expand its North American production capacity for LFP batteries for ESS to more than 50 GWh by the end of this year.
LG Energy Solution is also expanding its business scope through Vertech, its North American ESS SI subsidiary. Vertech's business range runs from battery cell supply to system integration. The company is advancing ESS business expansion through both its standalone and joint-venture production bases as well as Vertech, while boosting its ability to respond to demand for electric vehicles and energy storage systems (ESS).
The two sides each explained the significance and expected effects of the deal. Lucas Dow, CEO of Elevra Lithium, said the agreement is an important milestone in advancing the company's growth strategy, and expressed his intent to expand production and strengthen business competitiveness based on cooperation with LG Energy Solution.
Lee Kang-yul, executive vice president and head of the Purchasing Center at LG Energy Solution, said the deal is the result of strengthening the North American raw-material supply chain and that it also aims to respond to the growing North American battery market. He added that the company plans to improve supply chain stability and flexibility based on a stable supply of lithium concentrate and to respond quickly to customer demand.
Source: TECHWORLD · Kim Seung-gi
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407938
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Source: TECHWORLD
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