June 23, 2024

LGES wants to buy GT1 lithium from Canada

South Korean battery maker LG Energy Solutions (LGES) has invested in Australia-based lithium miner Green Technology Metals (GT1) and entered into a preliminary supply agreement covering North America.

Under the preliminary supply agreement, LGES is investing AUD 20 million in GT1 in exchange for a portion of lithium from Green Technology Metals’ Seymour project in Ontario, Canada. Specifically, from the start of commercial production, 25 percent of the lithium from the project must go to LGES within five years. The exact wording of the offtake agreement should be finalized by August 2023.

The Seymour lithium mine project is located near the Canadian community of Armstrong and approximately 250 kilometers north of the port city of Thunder Bay. The lithium company intends to use the aforementioned funds for the further development of the project, which the South Koreans are now participating in GT1. The partners are yet to announce a start date for the commercial rollout.

However, LGES insists the deal is an extension of its ongoing efforts to build a mineral supply chain in North America. The battery cell manufacturer’s production capacity is expected to eventually reach 300 GWh in North America, which “has the largest share of the global production network,” according to the LGES report. The company recently announced, among other things, that its planned battery factory in Arizona will be significantly larger than previously announced.

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“We have always been committed to expanding our supply chain in North America, as a stable supply of critical minerals, including lithium, is critical to providing our customers with our innovative energy solutions in a reliable and timely manner,” affirms Myung Hwan Kim, Head of Procurement. Official by LG Energy Solutions. “Thanks to partnerships with talented local suppliers like GT1, we will be committed to accelerating the transition to electric vehicles in North America through our product competitiveness and functionality.”

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“We welcome these important agreements with LGES and look forward to their contribution as GT1’s new strategic partner alongside AMCI, Lithium Americas and Primero. “LGES brings global scale and battery manufacturing expertise and a strong balance sheet as GT1 rapidly advances its integrated lithium strategy in North America,” said John Young, president of Green Technology Metals.
news.lgensol.com, greentm.com.au (Seymour Project)