LG Energy Solution secured lithium carbonate, a key material for battery cathode materials in the United States, to preemptively respond to the Inflation Reduction Act (IRA).
LG Energy Solution announced today that it has recently signed a long-term supply contract for lithium carbonate with Compass Minerals, a global mineral company in the United States.
The signing ceremony held in Yeouido, South Korea was attended by Kim Dong-soo, Executive Vice President of LG Energy Solution, Chris Yandell, Lithium Business Manager, Compass Minerals, and Ryan Bartlett, Lithium Sales Technology Director.
The two companies have already signed an MOU on lithium supply in June of this year.
Through this contract, LG Energy Solution will receive 40% of the annual production of lithium carbonate (about 11,000 tons) from Compass Minerals for six years from 2025.
In addition, the two companies also decided to pursue a supply contract for lithium hydroxide, a key material for high-nickel batteries.
Compass Minerals uses the Great Salt Lake located in Utah, USA to produce potassium sulfate and magnesium chloride. The company plans to produce lithium carbonate by using the brine discarded in this process.
Through this contract, LG Energy Solution will further enhance its ability to respond to IRAs by securing additional battery core materials in North America. In addition, the company will be able to strengthen its ESG (environmental, social, and governance) competitiveness in the process of building the raw material supply chain.
“Through the contract with Compass Minerals, which produces eco-friendly lithium, LG Energy Solution has achieved not only responding to IRAs but also strengthening ESG competitiveness," said Kim Dong-soo, Executive Vice President of LG Energy Solution. "LG Energy Solution will lead the battery market by establishing a stable local supply chain system.”
“This contract is an important milestone for our company to enter the rapidly growing lithium market," said Chris Yandell, Head of Lithium Business Unit at Compass Minerals. "Together with LG Energy Solutions, we will take the lead in establishing a differentiated battery supply chain.”
