Make Kitco Your Homepage

LG Energy signs battery-grade lithium supply deal with Compass Minerals

Kitco News

June 29 (Reuters) - South Korean battery maker LG Energy Solutions (LGES) said on Wednesday it had entered into a non-binding deal for battery-grade lithium supply with Compass Minerals while negotiations for a final agreement were ongoing.

Prices of battery metals including lithium, cobalt and nickel have rallied to multi-year highs due to red-hot demand for electric vehicles (EVs). Compass is the first U.S.-based lithium producer to partner with the battery manufacturer as it looks to solidify its supply chain in North America to meet soaring demand for EVs, LGES said. Under the deal, LG would receive as much as 40% of lithium carbonate and lithium hydroxide that Compass produces for seven years, starting 2025.

Separately, LGES which also supplies batteries to Tesla Inc said it was reassessing a $1.3 billion investment plan for an Arizona factory due to "unprecedented" economic conditions. LGES has also signed deals this year with Vulcan Energy Resources and Liontown Resources for battery minerals.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.