LG Energy Solution Diversifies Battery Material Supply Chain... Signs Lithium Ore Supply Contract with Australian Company

Diversification of Supply Chains for Core Battery Material Raw Materials

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution is accelerating the diversification of lithium supply chains, a key raw material for batteries.

According to the industry on the 12th, LG Energy Solution signed a lithium concentrate supply contract with Australian mining company 'Liontown' for five years from 2024 to 2028.

The lithium supply contract amounts to 700,000 tons, which is enough to produce 100,000 tons of lithium hydroxide. This can produce batteries for about 2.5 million high-performance electric vehicles capable of driving over 500 km on a single charge.

Lithium hydroxide is easy to synthesize with nickel, which increases battery capacity, making it a key material for high-capacity electric vehicle batteries, and demand has recently increased. According to the Korea International Trade Association, 83.5% of lithium hydroxide is imported from China.

LG Energy Solution expects to enhance the stability of the lithium hydroxide supply chain through the supply contract with the Australian company. It is known that this is the first time LG Energy Solution has signed a supply contract with an Australian lithium concentrate company.

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