LG Energy Solution to Buy Lithium from Compass Minerals of the U.S.

LG Energy Solution announced on June 30 that it has signed an MOU with Compass Minerals of the United States to purchase lithium carbonate and lithium hydroxide.

LG Energy Solution will receive 40 percent of the eco-friendly lithium carbonate and lithium hydroxide to be produced by Compass Minerals for seven years from 2025. The specific supply amount will be finalized in the main contract to be signed later. Lithium carbonate and lithium hydroxide are used for production of cathode materials, one of the key materials for high-capacity electric vehicle batteries.

Compass Minerals, a global mineral company, is seeking to enter the electric vehicle battery market. It currently produces potassium sulfate and magnesium chloride using Great Salt Lake in Utah of the United States, and plans to produce lithium using the brine discarded in the process.

LG Energy Solutions is preemptively securing key battery materials by solidifying its raw material supply chains in Australia, Europe, and South America. It signed long-term supply contracts with major lithium producers -- SQM in Chile and Vulcan Energy in Germany. It also inked long-term supply contracts with Sigma Lithium in Brazil and Lion Town in Australia, which are mining companies that produce lithium concentrates.