Shulou(Shulou.com)11/24 Report--

November 11 news, according to foreign media reports, South Korean battery manufacturer LG New Energy (LG Energy Solution) and the United States Compass Minerals International (Compass Minerals) signed a six-year battery-grade lithium carbonate purchase agreement.

It is reported that the agreement will come into effect in 2025. Under the terms of the agreement, LG New Energy will receive 40 per cent of the expected annual production of 11000 tons of Compass Minerals's first phase of the lithium brine project in the Great Salt Lake, Utah. The two companies also expect to continue to work together on part of the production of battery-grade lithium hydroxide in the second phase of the project.

It is reported that lithium carbonate and lithium hydroxide are used to produce cathode materials and are one of the key materials for large-capacity electric vehicle batteries.

LG New Energy is a new company that was spun off from LG Chemical (LG Chem) in December 2020 and specializes in battery business. Its customers include Tesla, General Motors and Volkswagen. After the split, LG Chemical will hold a 100 per cent stake in the new company.

It is reported that LG New Energy accounts for more than 20% of the global electric vehicle battery market, has production bases in the United States, China, South Korea, Poland, Canada and Indonesia, and is working to expand its business in North America.

At the beginning of October this year, foreign media reported that LG New Energy plans to operate six plants in North America by 2025, thus competing with Ningde Times, the world's largest power battery maker. The company expects the share of North American capacity to rise from about 7 per cent today to 45 per cent by 2025.

As global carmakers accelerate their transition to electric vehicles, ensuring access to key minerals needed for batteries is becoming increasingly important, the company said.

In September, LG New Energy said it had signed lithium and cobalt procurement agreements with three major Canadian key mineral suppliers to strengthen its key battery material supply chain in North America.

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