First Collaboration with US Lithium Producer,
Supplying Lithium for 7 Years Starting 2025
On the 28th (local time), LG Energy Solution signed an MOU with Compass Minerals in the United States for the supply of carbonate and lithium hydroxide. From the right in the photo: Dongsoo Kim, Executive Vice President of LG Energy Solution, and Chris Yendel, CEO of Compass Minerals. Photo by Dongsoo Kim
[Asia Economy Reporter Donghoon Jeong] LG Energy Solution is strengthening the lithium supply chain, a key raw material for electric vehicle batteries, in the United States.
On the 30th, LG Energy Solution announced that it had signed a memorandum of understanding (MOU) with Compass Minerals in the U.S. for the supply of lithium carbonate and lithium hydroxide.
This is the first time LG Energy Solution has signed a business agreement with a U.S. lithium producer.
Through this MOU, LG Energy Solution plans to receive 40% of the eco-friendly lithium carbonate and lithium hydroxide produced by Compass Minerals for seven years starting in 2025. The specific supply volume will be finalized in a formal contract later. Lithium carbonate and lithium hydroxide are essential raw materials used to compose cathode materials, which are key components of high-capacity electric vehicle batteries.
Global mineral company Compass Minerals is currently pursuing lithium resource development to enter the electric vehicle battery market. Located in Utah, USA, it produces potassium sulfate and magnesium chloride using the Great Salt Lake, and plans to produce lithium by utilizing brine (lake water containing lithium) discarded in this process.
In particular, it applies the 'DLE' (Direct Lithium Extraction) method to extract lithium directly from brine, and produces lithium using an eco-friendly method that utilizes solar and wind energy as power sources, resulting in lower carbon emissions compared to existing lithium producers. Through this, LG Energy Solution can strengthen its ESG (Environmental, Social, and Governance) competitiveness in the process of building its raw material supply chain.
Kim Dongsoo, Executive Vice President and Head of the Purchasing Center at LG Energy Solution, said, "This business agreement has provided an opportunity to strengthen a stable and eco-friendly raw material supply chain for our North American battery plants," adding, "Establishing a stable global supply chain system is a core competitiveness of the battery business, and we will continue to reinforce it."
In fact, LG Energy Solution is solidifying regional raw material supply chains in Australia, Europe, and South America to proactively secure key battery materials. LG Energy Solution has signed long-term lithium supply contracts with Chilean SQM, one of the world's largest lithium producers, and German Vulcan Energy until 2029, as well as long-term supply agreements with mining companies producing lithium concentrate such as Brazil's Sigma Lithium and Australia's Liontown.
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