LG Energy Solutions announced on the 22nd (local time) that it had signed a business agreement with Canadian mineral maker Electra, Avalon, and Snowlake, respectively, and decided to supply key raw materials for batteries, such as cobalt sulfate and lithium hydroxide.
LG Energy Solutions agreed to supply Electra and 7,000 tons of cobalt sulfate for three years from 2023. Electra is the only supplier in North America capable of refining cobalt sulfate.
Avalon signed a contract to supply 55,000 tons of lithium hydroxide for five years from 2025. Snow Lake will receive 200,000 tons of lithium hydroxide for 10 years. Lithium hydroxide is a key raw material for high-performance and high-capacity electric vehicle batteries.
As the Inflation Reduction Act (IRA) took effect in the US recently, LG Energy Solutions is expanding its strategic partnership by signing mid- to long-term supply contracts with companies that mine and process key battery raw materials in North America. Through this MOU, LG Energy Solutions expects that it will be able to strengthen its ability to build a supply chain that satisfies the IRA incentive conditions.
Vice Chairman Kwon Young-soo of LG Energy Solutions said, “This MOU is a meaningful achievement in establishing a stable raw material supply chain in the North American market, which announced that it would focus on its core competencies through announcing a mid- to long-term business strategy. We will strive to become the most profitable company that customers trust and love by providing the highest level of quality, cost, and delivery (QCD),” he said.
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