Lithium Plus Receives Public Procurement Service Approval for Lithium Raw Material Rental "Plans to Produce Korea's First Battery-Grade Lithium Hydroxide"

[Asia Economy Reporter Jang Hyowon] Lithium Plus announced on the 27th that the Public Procurement Service approved the loan of lithium carbonate. As a result, the company will borrow 290 tons of lithium carbonate, which the Public Procurement Service has stockpiled to prepare for supply disruptions.

The company stated, "We plan to refine the low-utilization lithium carbonate into battery-grade lithium hydroxide with 99.99% purity and sell it to one of the top three domestic battery manufacturers," adding, "This will be the first domestic production of high-purity lithium hydroxide, which has been entirely dependent on imports."

The Public Procurement Service stocks nine essential rare metals with high import dependency, including lithium, manganese, and vanadium. The lithium carbonate being loaned this time is also a quantity stockpiled as a key raw material to prepare for national supply disruptions. Due to the battery industry's raised demand standards and the lack of domestic refining production facilities and technology, it has not been utilized until now.

The company explained, "After a comprehensive evaluation of strict conditions such as production facilities, technological capability, and financial strength, the loan of lithium carbonate was approved," and added, "The loan period can also be extended, meaning that all raw materials for the initial production of Plant No. 1 have been secured."

The price of lithium hydroxide, considered a core material for secondary batteries, continues to show strength due to the surge in demand from the rapid growth of the electric vehicle market and supply shortages. Due to chronic supply shortages and high profitability, Elon Musk, CEO of Tesla, once referred to the lithium refining business as a 'money-printing license.'

Meanwhile, Jeon Woong, CEO of Lithium Plus, also serves as the CEO of Lithium Insight and leads the business. Lithium Insight announced earlier this month that it would invest in convertible bonds (CB) issued by Korea SE. On the 21st, it disclosed that it would inject funds into WI through a third-party allotment paid-in capital increase.