LG Power Answer Strengthens Partnership with WesCEF, Secures Secure Lithium Provide Chain for the North American Market

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• LG Power Answer indicators a second offtake settlement with WesCEF, expands its provide chain for aggressive lithium procurement
• Lithium hydroxide and lithium focus from WesCEF’s Mt. Holland lithium undertaking to be assembled into IRA-compliant batteries for the North American market
• The corporate to safe dependable and sustainable provide chain by establishing multiangle partnerships with WesCEF

SEOUL — LG Power Answer (KRX: 373220) introduced it signed an offtake settlement with Wesfarmers Chemical substances, Power and Fertilisers (WesCEF) for lithium focus, additional advancing the businesses’ pre-existing partnership pushed by the target to ship environment friendly and sustainable energy options to the North American market.

Below the settlement, WesCEF will provide LG Power Answer as much as 85,000 tons of lithium focus, which may very well be utilized in producing round 11,000 tons of lithium hydroxide, a vital uncooked materials for cathodes.

The offtake settlement solidifies LG Power Answer’s partnership with WesCEF, which is constructed on the corporate’s initiative to ship top-quality, IRA-compliant batteries to its prospects with pace and in scale. The 2 corporations have been working collectively in direction of their shared purpose of fresh power transition since 2022, once they signed their first, five-year offtake settlement for WesCEF’s battery-grade lithium hydroxide, totaling 50,000 tons.

WesCEF’s lithium hydroxide will probably be produced from the Mt. Holland lithium undertaking in Western Australia. One of many largest hard-rock lithium tasks globally, the Mt. Holland lithium undertaking is at present underneath building, and manufacturing is anticipated within the first half of calendar 12 months 2025. The undertaking has secured over AUD 2 billion from its three way partnership companions WesCEF and Sociedad Química y Minera (SQM), with Covalent Lithium appearing because the supervisor appointed by the three way partnership to develop and function the undertaking.

LG Power Answer and WesCEF are additionally exploring strategic alternatives for collaboration in upstream minerals and chemical processing. By increasing partnership with a aggressive provider like WesCEF, LG Power Answer is devoting its efforts to establishing structurally-sound and sustainable provide chain for IRA-compliant crucial minerals, by way of which the corporate will even be capable to safe long-lasting cost-competitiveness.

As a part of its efforts to additional improve its lithium provide chain, LG Power Answer has additionally secured a partnership with SQM, a world mining firm primarily based in Chile and likewise an investor within the Mt. Holland lithium undertaking, as two corporations signed a brand new long-term provide settlement for lithium carbonate and lithium hydroxide final 12 months. On this new contract that replaces the earlier one in power, the offtake quantity has almost tripled from the remaining contract quantity (36,000 tons) to 100,000 tons over seven years, thereby making certain extra steady provide of IRA-compliant lithium that may drive the corporate’s enterprise growth in North America.

Crucial minerals and uncooked supplies secured by way of this strong provide chain will probably be assembled into the corporate’s revolutionary lithium-ion batteries on the manufacturing services in North America, making them IRA-compliant energy options that may propel clear power transition within the area. LG Power Answer has eight services at present working or underneath building in North America, with stand-alone services in Michigan and Arizona and 6 three way partnership services with main automakers.

“As an business chief, according to the worldwide development of electrification and corresponding clear power insurance policies, we’re upholding the worth of sustainability in not simply our merchandise however each side of our enterprise, together with provide chain,” stated Kang Yeol Lee, Senior Vice President of Procurement Heart at LG Power Answer. “Partnering with main suppliers with nice potentials like WesCEF, we are going to guarantee steady procurement of key uncooked supplies, thereby delivering superior battery applied sciences at aggressive costs.”

Information courtesy of LG Power Answer.