LG Energy Solution Partners With Three Canadian Battery Material Suppliers

LG Energy Solution has signed separate partnership agreements with three battery material suppliers in Canada. The latest arrangements to secure lithium and cobalt from Snow Lake Resources Ltd., Electra Battery Materials Corporation and Avalon Advanced Materials Inc. willreinforce its key battery materials supply chain in North America.

Under the terms, Electra will supply 7,000 tons of cobalt sulfate for three years starting in 2023. Electra is known to be the only supplier capable of refining cobalt sulfate in North America.

LGES also signed two Memorandums of Understanding (MoU) with Avalon and Snow Lake to secure a stable supply of lithium.

Under the terms of the MoUs, Avalon will supply LGES with lithium hydroxide (11,000 tons per year) for five years initially, starting in 2025.

LGES will also be provided with Snow Lake's lithium hydroxide (20,000 tons per year) for ten years once the production starts in 2025.

LG Energy Solution, a split-off from LG Chem, is a global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. 

Youngsoo Kwon, CEO of LG Energy Solution, says: "As we have recently announced our mid- to long-term strategy to focus on North America, the fastest growing EV market, these partnerships serve as a crucial step towards securing a stable key raw material supply chain in the region. By constantly investing in upstream suppliers and establishing strategic partnerships with major suppliers of critical minerals, LGES will continue to ensure the steady delivery of our top-quality products, thereby further advancing the global transition to EVs and ultimately to a sustainable future."

Philip Gross, CEO Snow Lake Lithium, adds: “We are delighted to collaborate with world-leading LG Energy Solution to build a rock to road battery supply chain for the electric vehicle market in North America. Both Snow Lake Lithium and LG Energy Solution recognise the importance of local sourcing of critical raw materials, such as lithium, and that this is the logical step for battery and electric vehicle manufacturers.”

 LG Energy Solution's global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V., Hyundai Motor Group, and Honda Motor Co., Ltd.