LG Energy Solution invests in Australia to supply lithium
SEOUL, May 19 (Yonhap) – LG Energy Solution Ltd. (LGES) said on Friday that it had signed an investment agreement with an Australian lithium development company as part of efforts to boost supplies of this important metal used in electric vehicle (EV) batteries.
Under the agreement signed with Green Technology Metals Ltd. LGES will acquire approximately 7.89% stake in the Australian company and will have access to 25% of its annual concentrated lithium production over the next five years.
Lithium concentrate is an essential metal in the supply chain for electric vehicle batteries. It is used as a raw material to extract lithium hydroxide, which is a lithium product used to make cathode materials that determine the strength of an EV battery.
LGES said the two companies agreed to strengthen their long-term partnership. Green Technology Metals owns and operates four lithium mines in North America. LGES will source lithium-rich ore concentrate extracted from the Canadian Ontario block, which contains deposits of about 10 million tons of the mineral, according to LGES.