LG Energy Solution said it had signed a long term contract to source more lithium from Chilean mining company SQM SA as it continued to secure future supplies of raw materials.
SQM this week agreed to supply 100,000 tons of lithium to the EV battery maker for seven years starting this year, enough 2m EVs. This replaces an earlier agreement for 36,000 tons between the two companies.
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The deal includes the supply of both lithium hydroxide, used in high nickel highcapacity batteries, and lithium carbonate used in lower power density batteries such as lithium iron phosphate (LFP) cells.
Battery manufacturers globally are scrambling to secure enough materials as vehicle manufacturers step up their transition plans to zero emission vehicles over the next few years.
LGES has signed a number of supply deals with global mining companies in recent months, including Brazil-based Sigma Lithium Resources, Lithium Americas, SQM and Australian mining company Green Technology Metals in which it has acquired a minority stake.
LGES is currently building several full scale EV battery plants in North America alone that are scheduled to be completed in the next three years, including wholly owned operations and joint ventures with General Motors, Stellantis, Honda and Hyundai.
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