LG Energy Bolsters Lithium Supply with Second WesCEF Agreement

• LG Energy signs 85k ton lithium deal with WesCEF.
• WesCEF’s Mt. Holland project operational by H1 2025.
• LG Energy boosts lithium supply, expands in India’s EV market.

South Korea’s LG Energy Solution has taken significant steps to secure its lithium supply chain by signing a second offtake agreement with Australia’s Wesfarmers Chemicals, Energy, and Fertilisers (WesCEF). The collaboration aims to bolster LG Energy’s access to lithium, a crucial component in rechargeable lithium-ion batteries widely used in various industries.

Under the newly announced agreement, WesCEF will supply 85,000 tons of lithium concentrate to LG Energy. This concentrate can be utilized by LG Energy to produce approximately 11,000 tons of lithium hydroxide, a key material in battery production. This move follows a prior deal in 2022, where LG Energy secured 50,000 tons of battery-grade lithium hydroxide from WesCEF.

WesCEF’s lithium hydroxide will be derived from the Mt. Holland lithium project in Western Australia, currently under construction and expected to commence operations in the first half of 2025. This project is a significant source for high-quality lithium, contributing to LG Energy’s efforts to diversify and strengthen its lithium procurement channels.

LG Energy, a major supplier of battery cells to electric scooter manufacturers in India, has been making strategic moves to expand its presence in the country’s passenger vehicle market. The company’s India unit dominates the supply of battery cells to prominent e-scooter manufacturers, including SoftBank Group-backed Ola Electric and domestic rival TVS.

Notably, LG Energy had previously signed a supply deal in 2023 with Chile’s SQM, securing 100,000 tons of lithium over seven years. These agreements highlight LG Energy’s commitment to ensuring a stable and diverse supply of lithium, a critical raw material for batteries that power various devices, from smartphones and laptops to electric vehicles and grid-scale energy storage systems.

The continuous efforts by LG Energy to strengthen its lithium supply chain reflect the company’s strategic vision to play a pivotal role in the growing demand for electric vehicles and energy storage solutions worldwide.

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