(LG Energy Solution)
South Korean battery manufacturer LG Energy Solution Ltd. (LGES) announced on Thursday that it had 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 supply 2,000 tonnes of natural graphite anode material to LGES, starting in 2025, and will gradually expand the supply over the years, said the Seoul-based company in a statement.
The two companies plan to sign the binding levy agreement by the end of this year after defining the details of the terms.
Syrah operates a graphite mining facility in Mozambique, known as one of the largest graphite reserves in the world. It also plans to build a graphite plant in the US state of Louisiana, which will help LGES reduce its dependence on China for mineral supplies, the Korean company said.
The partnership with Syrah will also help the battery maker meet US battery component requirements under 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 maker, has stepped up efforts to secure raw materials for lithium-ion batteries used in electric vehicles.
Earlier, he announced a series of similar supply deals, including cobalt sulfate and lithium hydroxide deals with three Canadian mining companies, and one with US-based Compass Minerals for lithium carbonate and lithium hydroxide. (Yonhap)