Battery manufacturer LG Chem will make a $75-million equity investment in Piedmont Lithium. This will result in LG Chem holding approximately 5.7% of Piedmont common shares.
LG will also commit to the offtake of 200,000 metric tons of spodumene concentrate (SC6) from Piedmont’s jointly-owned North American Lithium over a four-year term.
Piedmont has agreed to supply LG Chem with 50,000 metric tons per year of SC6 for four years–shipments are to begin in Q3 2023. LG Chem will utilize the material to produce cathode materials for key North American customers. Piedmont will also provide LG Chem priority negotiation rights for 10,000 metric tons per year of lithium hydroxide produced at one of its proposed facilities in Tennessee and North Carolina.
“This agreement allows LG Chem to provide differentiated values to North American customers with products that satisfy IRA standards by preemptively securing raw materials in the US, our key market,” said Mr. Hak-Cheol Shin, Vice Chairman and CEO of LG Chem. “As we work to build various partnerships, including joint metal investments with automotive OEMs and battery makers, we’re pleased that our partnership with and commitment of funds to Piedmont will help support its development of US lithium projects.”
Source: Piedmont Lithium