LG Energy Solution has signed a memorandum of understanding (MoU) with US-based mining company Compass Minerals for battery-grade lithium materials. According to Korean news outlets, this was LGES's first agreement with an American lithium supplier.
For seven years starting from 2025, Compass Minerals will supply 40% of its production of lithium materials to LGES, according to Money Today and Edaily.
The Kansas-based mining company currently does not produce lithium but eyeing the surging demand for lithium battery, it said it will start producing lithium materials from its facilities in the Great Salt Lake area in Utah.
It might be worth mentioning that its direct lithium extraction (DLE) facilities are powered by solar or wind energy to reduce carbon emissions.
Kim Dong-soo, senior vice president at LGES said the partnership will strengthen its supply chain in North America. The use of renewable energy by Compass Minerals will also enhance LGES's competitiveness in ESG reporting.
So far, the company has signed agreements with Chile-based SQM, Germany-based Vulcan Energy, Brazil-based Sigma Lithium, and Australia-based Liontown for material supply.