LGES to buy lithium from GT1 in Canada

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 AUD 20 million (around €12 million) in Australian-based lithium miner Green Technology Metals (GT1). Under the preliminary supply agreement, LGES will secure 25 percent of the lithium from Green Technology Metals’ Seymour project in Ontario, Canada. This agreement spans a five-year period starting from the commencement of commercial production. The final details of the offtake agreement are expected to be finalized by August 2023.

The Seymour lithium mining project, located near Armstrong, Canada, is set to benefit from the funds provided by LGES, enabling the project’s further development. However, the exact date for the start of commercial mining has not yet been disclosed.

LGES sees this agreement as part of its ongoing efforts to establish a mineral supply chain in North America. With its production capacity expected to reach approximately 300 GWh when fully developed, LGES aims to make North America a significant hub in its global production network. This follows the recent announcement that LGES’ battery factory planned in Arizona will be larger than initially anticipated, further reinforcing its commitment to expanding its presence in the region.

“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)