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LG Energy Solution's battery manufacturing plant in Ochang, North Chungcheong Province (LG Energy Solution) |
LG Energy Solution said Tuesday that it had struck a deal to secure a large-scale lithium supply with Australian mining firm Liontown Resources, bolstering its global supply chain of key raw materials for electric vehicle batteries.
According to the Korean firm, the contract guarantees about 1.75 million tons of lithium spodumene concentrate over the next 15 years. The supply is enough to produce batteries for approximately 5 million EVs with a range of at least 500 kilometers per charge.
LG Energy Solution said the new lithium supply meets the US Inflation Reduction Act’s government subsidy requirements.
LG Energy Solution also announced the decision to invest $250 million in five-year convertible notes of Liontown Resources, which is listed on the Australian Securities Exchange with a market capitalization of 2.35 billion Australian dollars ($1.56 billion).
The two companies agreed on reviewing a joint investment in building a conversion plant that can process lithium spodumene concentrate, which will be produced from Liontown Resources’ Kathleen Valley mine in the southwest region of Australia.
“By securing the large supply of high-quality lithium, we have positioned ourselves to procure key raw materials to cope with market uncertainties,” said LG Energy Solution CEO Kim Dong-myung.
