LG Energy Solution has agreed to acquire a 4.8% stake in Chinese battery materials supplier Great Power Nickel & Cobalt Materials Company, as it looks to secure future supplies of raw materials amid surging demand for EVs.
The South Korean EV battery manufacturer said it would invest KRW350bn (US$297m) in the Chinese company in a deal that also includes a six year supply contract for 20,000 tons of nickel sulphate from 2023, enough for 370,000 EV battery packs.
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The material will be supplied from the Shanghai-based company’s new 30,000 tonnes/year nickel sulphate plant in Zhejiang province where it also operates a cobalt plant. Both nickel and cobalt sulphates are commonly used in EV battery cathodes.
LG Chem’s wholly-owned subsidiary has been moving aggressively to secure supplies of key raw materials for EV batteries in the last year and signed a six year deal with Australian Mines just last month to source 71,000 tonnes of nickel and 7,000 tonnes of cobalt from late 2024.
