LG Energy Solution signs lithium concentrate supply contract with Australia's Liontown: "700,000 tons over 5 years"

Securing Main Raw Materials for High-Capacity EV Batteries... "Opportunity to Diversify Lithium Supply Sources"

[Asia Economy Reporter Moon Chaeseok] LG Energy Solution will receive 700,000 tons of lithium concentrate over five years from the Australian mining company 'Liontown.' By securing a key raw material supply source for high-capacity electric vehicle batteries, it will be able to minimize supply risk.

According to industry sources on the 2nd, Liontown announced on the Australian Securities Exchange (ASX) that it had signed a final lithium concentrate supply contract with LG Energy Solution. Earlier, LG Energy Solution had signed a preliminary supply agreement with Liontown in January.

Under this final contract, LG Energy Solution will receive 700,000 tons of lithium concentrate over five years from 2024 to 2028. The supply contract can also be extended for an additional five years. The 700,000 tons of lithium concentrate can produce 100,000 tons of lithium hydroxide, which is enough to make batteries for approximately 2.5 million high-performance electric vehicles (capable of driving over 500 km on a single charge). Lithium hydroxide is used as a raw material for high-capacity electric vehicle batteries because it easily combines with nickel, which increases battery capacity.

Increasing the proportion of nickel, a key raw material for cathode materials, raises energy density and extends the driving range per charge for electric vehicles. For this reason, demand for 'high-nickel batteries' with increased nickel content has recently been rising.

Through this contract, LG Energy Solution has secured a stable supply chain of lithium concentrate, from which lithium hydroxide, a key raw material for high-capacity electric vehicle batteries, can be extracted. Lee Kang-yeol, Executive Director of Strategic Procurement at LG Energy Solution, explained, "By signing the contract with Liontown, we have established a long-term supply partnership and gained an opportunity to diversify lithium sources by receiving lithium concentrate from key projects of a global mining company."

Tony Ottaviano, CEO of Liontown, responded, "We are pleased to have signed a lithium concentrate contract that accounts for up to 30% of LG Energy Solution's production. We have laid the foundation for a long-term partnership and are proud to supply lithium to LG Energy Solution, a global leader in lithium-ion batteries, through projects underway in the Kathleen Valley in Western Australia, where our mine is located."

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