LG Energy Solution and Canada Electra Triple Sulfuric Acid Cobalt Transaction Volume

Securing 19,000 Tons from 2025 to 2029
Reducing Dependence on China and Gaining IRA Benefits

LG Energy Solution will receive 19,000 tons of cobalt sulfate, a key raw material for high-performance electric vehicle batteries, from Canadian mineral company Electra over five years starting in 2025. This is nearly three times the volume and two years longer than the '7,000 tons supply over three years starting this year' contract the two companies signed last September.

Electra announced on the 24th (local time) that it had signed an agreement with LG Energy Solution for the long-term supply of cobalt sulfate under these terms.

Trent Mell, CEO of Electra, said, "LG Energy Solution continues to strengthen its position as a global leader in the electric vehicle supply chain through active cooperation with Canadian companies."

Electra is the only cobalt sulfate refining company in North America. Electra plans to produce cobalt sulfate at a refinery scheduled to be completed in Ontario, Canada. The company intends to minimize carbon emissions by using eco-friendly energy sources such as solar power for the electricity required in the refining process.

With this agreement, LG Energy Solution will be able to stably supply critical minerals that meet the Inflation Reduction Act (IRA) incentive requirements to its battery manufacturing plants in North America. The diversification of the supply chain will also reduce dependence on China. China produces 71% of the refined cobalt used in electric vehicle batteries worldwide.

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