LG Energy Solution to purchase 700,000 tons of lithium ore concentrate from Australia

South Korean battery maker LG Energy Solution Ltd. has signed an initial contract to purchase 700,000 dry metric tons of lithium ore concentrate from an Australian miner, a document showed Wednesday, a deal that could help LG secure a supply of lithium-ion battery materials.

A disclosure document posted by Liontown Resources Ltd. said it will supply the lithium spodumene concentrate to LG Energy Solution under a five-year offtake agreement starting 2024, with a potential extension for another five years.

The output will come from its $341 million lithium mining project under way in Western Australia.

Lithium spodumene is a feedstock for lithium chemicals used in the production of batteries for electric vehicles (EVs). With 700,000 dmt of spodumene, a battery maker can roughly produce enough to be used in some 2.5 million EVs. (Yonhap)