Seoul (South Korea), October 20: South Korean battery maker LG Energy Solution Ltd. (LGES) said Thursday it has signed a non-binding supply agreement with an Australian partner for a key mineral used in lithium-ion batteries.
Under the memorandum of understanding with Syrah Resources Ltd., the Australian company will provide 2,000 tons of natural graphite anode material to LGES, starting in 2025, and gradually expand the supply over the years, the Seoul-based company said in a release.
The two companies plan to sign the binding offtake agreement by the end of this year after working out the details of the terms.
Syrah runs a graphite mining facility in Mozambique, known as one of the world's largest graphite reserves. It also plans to build a graphite plant in the U.S. state of Louisiana, which will help LGES reduce its dependence on China for mineral procurement, the Korean company said.
Partnering with Syrah will also help the battery maker meet the U.S. requirements for battery components in the new Inflation Reduction Act (IRA), as the new law, enacted in August, will require a certain portion of minerals produced or processed in the United States or in countries or regions that have free trade agreements with Washington.
LGES, the world's second-largest battery manufacturer, has been ramping up efforts to secure the raw materials for lithium-ion batteries used in electric vehicles.
Earlier, it announced a string of similar supply deals, including the cobalt sulfate and lithium hydroxide deals with three Canadian mineral companies, and one with the U.S.-based Compass Minerals for lithium carbonate and lithium hydroxide.
Source: Yonhap
