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LG Energy Solution Ltd. has signed a non-binding agreement with a US mining company, Compass Minerals, for the supply of lithium carbonate and lithium hydroxide, which are used in electric vehicle lithium-ion batteries.
For seven years starting in 2025, LGES will get 40 percent of the lithium carbonate and lithium hydroxide Compass Minerals, a Kansas-based supplier of critical minerals, will be manufacturing.
The two most popular forms of lithium utilized to create cathode materials for lithium-ion batteries are lithium carbonate and lithium hydroxide. The EV battery's cathodes determine its output.
The MOU also gives Compass Minerals the option to supply 40 percent of its lithium brine production once its Utah development project is fully operational.
According to Kim Dong-soo, senior vice president of the LG Energy Solution procurement center, procuring crucial raw materials has become vital for them to preserve their leadership position in the industry.
Compass Minerals said it will continue “good-faith negotiations” with LGES toward a binding supply agreement.
