LG Energy Solution Secures Raw Materials for Eco-Friendly Battery Technology

Australia AM Electric Vehicle Nickel and Cobalt Purchase Contract for 1.3 Million Units
"Battery Raw Material Supply Chain Management, Business Competitiveness Up"

Pouch-type battery long cell product of LG Energy Solution

[Asia Economy Reporter Choi Dae-yeol] LG Energy Solution has secured a stable supply of nickel and cobalt, key raw materials for batteries.

On the 16th, the company announced that it signed a long-term purchase agreement with Australian battery raw material producer 'Australian Mines (AM)' for processed nickel products (nickel-cobalt hydroxide mixed compounds). Accordingly, from the second half of 2024, it will receive 71,000 tons of nickel and 7,000 tons of cobalt over six years. This amount is enough to produce batteries for 1.3 million high-performance electric vehicles that can travel over 500 km on a single charge.

AM, established in 2001, is advancing the Scorny Project, which produces nickel and cobalt for electric vehicle batteries using eco-friendly methods. It plans to complete the construction of a smelting plant in the Greenvale area of Queensland, Australia, in 2024.

LG Energy Solution has secured key raw materials for batteries while also enhancing its ESG (Environmental, Social, and Governance) competitiveness. AM plans to treat mineral waste (tailings) generated as byproducts during mining using a dry stacking method. This method neutralizes and dries waste for storage, which is more costly in terms of construction and maintenance compared to conventional methods but is environmentally friendly.

Additionally, last year, AM joined the IRMA (Initiative for Responsible Mining Assurance) as a member. This is a consortium that promotes ethical and environmentally friendly cobalt and lithium mining, and LG stated that it undergoes verification by independent organizations regarding environmental and social issues.

Earlier, in June, the company invested 12 billion KRW in Australian nickel and cobalt smelting company QPM, acquiring about a 7% stake. Prior to that, in December last year, it participated in a paid-in capital increase of Solus Advanced Materials' European subsidiary, investing 57.5 billion KRW. Solus Advanced Materials produces copper foil for secondary batteries. Kim Jong-hyun, President of LG Energy Solution, said, "Securing competitiveness in key raw materials for batteries and managing responsible supply chains have become important business competitiveness factors in the battery industry," adding, "We will solidify our position as a global leader."

This content was produced with the assistance of AI translation services.