Chemical manufacturer LG Energy Solution signed an offtake agreement with peer firm Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) on Tuesday, for lithium concentrate as well as to deliver efficient and sustainable power solutions to the North American market.
The collaboration will allow WesCEF to supply about 85,000 tons of lithium concentrate to LG Energy, which will be utilized in the production of around 11,000 tons of lithium hydroxide, a raw material for cathodes, said the South Korean firm.
The battery company said the agreement with WesCEF comes after signing a 5-year deal for about 50,000 tons of battery-grade lithium hydroxide in the year 2022. Additionally, WesCEF’s lithium hydroxide will be produced from Mt. Holland Lithium Project, Western Australia, which is expected to commence its production in the first half of 2025.
The firm said, in collaboration with WesCEF, it is looking for opportunities to partner in upstream minerals and chemical processing to establish a sustainable supply chain for IRA-compliant critical minerals.
As part of efforts to enhance its lithium supply chain, the firm joined forces with Chile-based SQM, a global mining company to supply over 100,000 metric tons of battery-grade lithium carbonate and lithium hydroxide.
Lithium concentrate is a type of rock or mineral that contains significant concentrations of lithium. It is used in the development and manufacturing of rechargeable batteries that can power vehicles and other devices.
LG Energy Solution, a split-off from LG Chem, is a manufacturer of lithium batteries that specializes in advanced automotive batteries, mobility and IT batteries, and ESS Battery enterprises, focusing on innovation and development in the green energy transition.
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