LG Energy Solution Strengthens Supply Chain for Battery Anode Material Graphite in North America

MOU for Natural Graphite Supply with Australia Sirasa
Diversifying Graphite Supply Chain Highly Dependent on China

[Asia Economy Reporter Oh Hyung-gil] As the United States intensifies efforts to strengthen the domestic supply chain for electric vehicle battery raw materials, LG Energy Solution has secured a supply chain for graphite, a key anode material, in the North American market.

On the 19th (local time), LG Energy Solution signed a Memorandum of Understanding (MOU) with Australian company Syrah Resources for the supply of natural graphite. Starting with the supply of 2,000 tons of natural graphite mass-produced by Syrah from 2025, the two companies plan to expand their cooperation. They will finalize the supply contract after negotiating detailed terms by the end of the year.

Syrah owns and operates a mine in Mozambique, Africa, known as the world's largest graphite deposit, and plans to establish and operate a production plant in Louisiana, USA, starting next year.

Using Syrah's natural graphite is expected to significantly reduce dependence on China. Graphite is considered the mineral with the highest dependence on China among key battery materials. According to the International Energy Agency (IEA), last year, 70.4% of graphite was sourced from China.

LG Energy Solution explained that by securing key raw materials ahead of the implementation of the U.S. Inflation Reduction Act (IRA), it has strengthened its competitiveness and can further enhance its customer value capabilities in North America. In particular, raw materials produced from Syrah's graphite mines or U.S. production plants used in battery manufacturing qualify for electric vehicle subsidy payments.

LG Energy Solution has further strengthened a stable supply chain for key battery materials in North America, including cathode materials such as lithium, nickel, and cobalt, as well as anode material graphite.

Previously, it agreed to receive 7,000 tons of cobalt sulfate and 255,000 tons of lithium hydroxide from Canadian mineral companies Electra, Avalon, and Snow Lake.

Additionally, it secured 690,000 tons of lithium concentrate from Canadian Sigma Lithium, 40% of lithium carbonate and lithium hydroxide produced over seven years from 2025 by U.S. lithium producer Compass Minerals, 45,000 tons of lithium hydroxide from German European lithium producer Vulcan Energy, and 700,000 tons of lithium concentrate raw materials for lithium hydroxide from Australian Liontown.

Kwon Young-soo, Vice Chairman of LG Energy Solution, said, "It is highly meaningful that we were able to proactively secure competitive raw materials in the U.S., a core strategic market. We will do our best to provide customers with the best QCD (Quality, Cost, Delivery) by ensuring differentiated raw material supply stability and cost competitiveness."

Sean Werner, CEO of Syrah, said, "We are honored to sign an MOU for natural graphite supply with LG Energy Solution, a global leader in the battery market. We will continue efforts to expand battery production capacity and build supply chains within the United States."

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