South Korean battery manufacturer LG Energy Solution (LGES) is investing in Australian-based lithium miner Green Technology Metals (GT1) and has signed a preliminary supply agreement with GT1 for North America.
LGES is investing 20 million Australian dollars (equivalent to just over €12 million) in GT1 and, according to the preliminary supply agreement, secures part of the lithium from Green Technology Metals’ Seymour project in the Canadian province of Ontario. Specifically, 25 per cent of the lithium from this project will go to LGES over a period of five years from the start of commercial production. The exact wording of the offtake agreement is to be finalised by August 2023.
The Seymour lithium mining project is located near the Canadian community of Armstrong and approximately 250 kilometres north of the port city of Thunder Bay. The lithium company intends to use the above-mentioned funds, with which the South Koreans are now participating in GT1, to further develop the project. The partners have not yet named a date for the start of commercial mining.
LGES emphasises, however, that the agreement is an extension of its ongoing efforts to build a mineral supply chain in North America. That is because the battery cell manufacturer’s production capacity in North America is expected to reach about 300 GWh when fully developed, “representing the largest share of its global 2 production network”, according to LGES. The company recently announced that its battery factory planned in Arizona would be significantly larger than previously known.
“We have always been committed to expanding our supply chain in North America, as a steady supply of critical minerals, including lithium, is key to ensuring reliable and timely delivery of our innovative power solutions to our customers”, says Myung Hwan Kim, Chief Procurement Officer of LG Energy Solution. “Thanks to partnerships with competent local suppliers like GT1, we will continue our devotion to expediting the EV transition in North America, through our product competitiveness and operational excellence.”
“We welcome the execution of these important agreements with LGES and look forward to their contribution as a new strategic partner with GT1, alongside AMCI, Lithium Americas and Primero. LGES brings global scale and expertise in battery manufacturing as well as balance sheet strength as GT1 rapidly advances its integrated lithium strategy in North America”, says John Young, Chairman of Green Technology Metals.
news.lgensol.com, greentm.com.au (Seymour Project)
Keyword: LGES to buy lithium from GT1 in Canada