LG Energy Solution has signed an offtake agreement with Compass Minerals, a U.S. producer of essential minerals, for the purchase of battery-grade lithium carbonate.
The agreement, set to begin in 2025, is for a six-year term, with LGES receiving 40 percent of Compass Minerals’ anticipated annual production of 11,000 metric tons during phase 1 of the lithium brine development project at its Ogden, Utah operation site on the Great Salt Lake.
LG Energy Solution will increase direct sourcing of metals through equity investments and long-term supply agreements. LG Energy Solution plans to localize 72 percent of critical minerals sourcing within five years.