LG Energy signs agreement with Canadian firm for lithium concentrate supply

LG Energy Solution, Korea's leading battery maker, said Thursday it has signed a long-term agreement to secure lithium concentrate from a Canadian company.

Under the deal, Elevra Lithium will supply LG Energy with 240,000 metric tons of lithium concentrate over a four-year period starting later this year, the company said in a press release.

LG Energy expects the supply agreement to help strengthen its ability to respond to local customer needs while supporting the rapid growth of the North American energy storage system (ESS) market.

“This agreement marks another important step in strengthening our raw material supply chain in North America and supporting the region's rapidly growing ESS market,” Lee Kang-yeol, procurement center leader of LG Energy Solution, said.

Amid growing demand for ESS batteries, the company plans to have more than 50 gigawatt-hours of lithium iron phosphate cell production capacity in North America by December, with capacity at three wholly owned plants — LG Energy Solution Michigan-Lansing, LG Energy Solution Michigan-Holland and NextStar Energy in Ontario, Canada — and two joint venture facilities, one with Honda Motor in Ohio and the other with General Motors in Tennessee.

Battery companies have stepped up efforts to secure more ESS battery deals to offset lackluster demand for EV batteries amid a prolonged downturn in the EV market.

The U.S. ESS market is expected to grow fourfold by 2031, reaching 499 GWh in capacity, according to market research firm Wood Mackenzie.

Yonhap