Lithium carbonate will be supplied to Korean firm for 6 years
LG Energy Solution (LGES) announced on Nov. 11 that it had signed a binding offtake agreement this week on the purchase of battery-grade lithium carbonate with Compass Minerals, a U.S. producer of essential minerals.
Under the agreement, LGES will receive 40 percent of Compass Minerals’ anticipated annual production of 11,000 metric tons between 2025 and 2030.
LGES said that Compass Minerals was known for its low carbon emission practices compared to other lithium producers, enabled through direct extraction of lithium (DLE) from brines and utilizing solar evaporation processes.
Through these measures, the Seoul-based battery manufacturer is pursuing sustainable lithium production to support the North American battery market.
“This offtake agreement with Compass Minerals culminates our continued endeavors to establish a stable supply chain for critical minerals in North America as we adapt to recent regulatory changes and intensifying competition over key battery raw materials,” LGES Senior Vice President Kim Dong-soo said.
“Our partnership bears even more significance as we expect Compass Minerals’ sustainable lithium project to help advance our mission of achieving carbon neutrality across the entire value chain.”
Chris Yandell, chief of Lithium for Compass Minerals, also hailed the two-way cooperation.
“This binding supply agreement represents an important milestone for our company’s entry into a rapidly growing domestic lithium market,” he said.
“We are excited to partner with a proven manufacturing leader like LGES to help enable the buildout of a robust and secure advanced battery supply chain.”
To deal with the Inflation Reduction Act of the United States, LGES plans to localize 72 percent of critical minerals sourcing within five years to keep getting tax credits.