LG Energy signs cobalt and lithium supply agreements with three Canadian miners

An employee walks past the logo of LG Energy Solution at its office building in Seoul, South Korea November 23, 2021. Picture taken November 23, 2021. REUTERS/Kim Hong-Ji/File Photo

SEOUL, Sept 23 (Reuters) – South Korean battery maker LG Energy Solution (373220.KS) said on Friday it had signed lithium and cobalt supply deals with three Canadian mining companies in a bid to expand its footprint in North America.

The Tesla supplier (TSLA.O) said in a statement that the agreements are part of an effort to expand medium- and long-term supply contracts with companies that mine and process key battery materials in America. North.

The US Inflation Reduction Act (IRA), signed into law by US President Joe Biden in August, requires that a percentage of critical minerals used in electric vehicle (EV) batteries come from the United States or a US free trade partner.

LG said the three Canadian mining companies, Electra, Avalon and Snowlake, will supply LG with 7,000 tonnes of cobalt sulfate for three years from 2023, 55,000 tonnes of lithium hydroxide for five years from 2025 and 200,000 tons of lithium hydroxide for 10 years, respectively.

Reporting by Joyce Lee; Editing by Sherry Jacob-Phillips

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