LG Energy Solution is branching out in its efforts to secure supply chain of materials as it ramps up its battery production to satiate the growing market demand.
LGES announced on June 29 that it has signed a non-binding Memorandum of Understanding (MOU) with Compass Minerals, a leading U.S. provider of essential minerals, critical to producing battery-grade lithium.
Under the terms of the MOU, Compass Minerals would supply LGES with lithium carbonate and hydroxide. The MOU states that LG Energy Solution would be supplied with as much as 40% of Compass Minerals’ planned annual phase-one lithium carbonate and lithium hydroxide production for 7 years starting in 2025.
LGES and Compass Minerals have committed to continuing good-faith negotiations toward a binding supply agreement.
Compass Minerals is widely known to deliver essential minerals like Sulfate of Potash, Sodium Chloride and Magnesium Chloride and is currently pursuing development options available to service growing U.S. market demand for battery-grade lithium.
Senior Vice President Kim Dong-soo of Procurement Center at LG Energy Solution said, “Securing key raw materials has become critically important, in order to maintain our lead position in the global battery market. LGES will make sure to support establishment of steady supply chain in North America, while it continues to seek and acquire environmentally friendly produced battery-grade lithium worldwide.”