South Korean battery manufacturer LG Energy Solution (LGES) is making a significant investment in the Australian-based lithium miner Green Technology Metals (GT1) and has recently signed a preliminary supply agreement with GT1 specifically for North America.
In a move aimed at expanding its presence in the region, LGES is injecting AUD 20 million (approximately €12 million) into the Australian-based lithium miner, GT1. This investment will pave the way for LGES to secure 25 percent of the lithium produced from Green Technology Metals’ Seymour project located in Ontario, Canada. The preliminary supply agreement encompasses a five-year duration, commencing from the initiation of commercial production. The finer details of the offtake agreement are anticipated to be finalized by August 2023.
The Seymour lithium mining project, situated near Armstrong, Canada, stands to benefit greatly from the financial support provided by LGES, as it will enable further development of the project. However, specific details regarding the commencement of commercial mining have yet to be disclosed.
LGES views this agreement as a crucial step in its ongoing endeavors to establish a robust mineral supply chain in North America. With plans to achieve a production capacity of approximately 300 GWh once fully developed, LGES aims to position North America as a significant hub within its global production network. This aligns with LGES’ recent announcement that its battery factory in Arizona will surpass initial expectations in terms of size, further underscoring its commitment to expanding its presence in the region.
“Myung Hwan Kim, Chief Procurement Officer of LG Energy Solution, emphasizes, “We have always been committed to expanding our supply chain in North America, as a consistent and reliable supply of critical minerals, including lithium, is pivotal to ensuring the dependable and timely delivery of our cutting-edge power solutions to our valued customers. Through partnerships with proficient local suppliers such as GT1, we will persist in expediting the electric vehicle transition in North America by leveraging our product competitiveness and operational excellence.”
John Young, Chairman of Green Technology Metals, enthusiastically states, “We warmly welcome the execution of these significant agreements with LGES and eagerly anticipate their valuable contribution as a new strategic partner for GT1, joining the ranks of AMCI, Lithium Americas, and Primero. LGES brings unparalleled global scale and expertise in battery manufacturing, along with substantial financial stability, which will greatly support GT1 as it rapidly advances its integrated lithium strategy in North America.”
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