Snow Lake, LG Energy Solution collaborate to establish lithium supply chain in North America
(Kitco News) - On Friday, Snow Lake Lithium (NASDAQ: LITM) informed it has signed a non-binding memorandum of understanding (MOU) with LG Energy Solution as a next step towards building the domestic supply chain for the North American electric vehicle market.
According to a press-release, Snow Lake Lithium and LGES will collaborate to explore the opportunity to create one of Canada's first lithium hydroxide processing plants in CentrePort, Winnipeg, Manitoba.
Under the terms of the MOU, Snow Lake Lithium will supply LGES with lithium over a 10-year period once production starts in 2025. The MOU and contemplated partnership will be subject to a number of conditions, including the completion of due diligence from both parties, the company said.
Importantly, Snow Lake added that a scoping study, in partnership with Primero, is already underway to identify the technologies, innovations and skills required to deliver a world-class lithium hydroxide plant within the Manitoba Province.
CEO Philip Gross stated, "We are delighted to collaborate with world-leading LG Energy Solution to build a rock to road battery supply chain for the electric vehicle market in North America.
"Both Snow Lake Lithium and LG Energy Solution recognize the importance of local sourcing of critical raw materials, such as lithium, and that this is the logical step for battery and electric vehicle manufacturers. Our all-electric lithium mine in Snow Lake Manitoba will power 5 million electric vehicles over the next 10 years, helping to secure the future of the North American automobile market."
Based in Manitoba, Canada, Snow Lake Lithium is developing the world's first all-electric lithium mine to enable domestic supply of this critical resource to the North American electric vehicle industry.
Snow Lake Lithium's 55,000-acre site is expected to produce 160,000 tonnes of 6% lithium spodumene a year over a 10-year period, enough to power 5 million electric vehicles. The company said that currently, it has explored approximately 1% of its site and is confident that further exploration will increase estimates over the course of the next year.
Snow Lake noted that over the coming months, the company will continue its engineering evaluation and drilling programme across its site, with the expectation that mining operations will transition to commercial production targeted for 2025.
LG Energy Solution, a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems.
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