LG Energy Solution has signed a non-binding Memorandum of Understanding (MoU) with Compass Minerals (NYSE: CMP), a provider of essential minerals for producing battery-grade lithium.
Under the terms of the MoU, Compass Minerals would supply LGES with lithium carbonate and hydroxide. LGES would be supplied with as much as 40% of Compass’s planned annual phase-one lithium carbonate and lithium hydroxide production for 7 years starting in 2025.
LGES says Compass is the first US lithium producer to partner with the company as it works to solidify its supply chain in the US and cater to the growing EV demand in North America.
“Securing key raw materials has become critically important, in order to maintain our lead position in the global battery market,” said Dongsoo Kim, Senior VP of Procurement Center at LG Energy Solution. “LGES will make sure to support establishment of a steady supply chain in North America, while it continues to seek and acquire environmentally friendly battery-grade lithium worldwide.”
Source: LG Energy Solution