LG Energy Solution has inked a deal with Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) for lithium concentrate.
Under the terms of the agreement, WesCEF is set to provide LG Energy Solution with up to 85,000 tons of lithium concentrate, a critical ingredient in the production of approximately 11,000 tons of lithium hydroxide, essential for cathodes.
This latest agreement marks a continuation of the partnership between LG Energy Solution and WesCEF, which initially commenced in 2022 with a five-year offtake agreement for WesCEF’s battery-grade lithium hydroxide, totaling 50,000 tons.
The lithium hydroxide supplied by WesCEF will originate from the Mt. Holland lithium project located in Western Australia. Positioned as one of the largest hard-rock lithium projects globally, the Mt. Holland lithium project is presently undergoing construction, with production slated to commence in the first half of calendar year 2025.
The project has received substantial financial backing, amounting to over AUD 2 billion from joint venture partners WesCEF and Sociedad Quimica y Minera (SQM), with Covalent Lithium serving as the appointed manager tasked with overseeing project development and operations.
In addition to this agreement, LG Energy Solution and WesCEF are exploring avenues for strategic collaboration in upstream minerals and chemical processing. By fortifying its partnership with WesCEF, recognized as a competitive supplier, LG Energy Solution is reinforcing its commitment to establishing a robust and sustainable supply chain compliant with International Resource Alliance (IRA) standards, thereby ensuring long-term cost competitiveness.
LG Energy Solution further solidified its position in the lithium market with a recent partnership agreement with SQM, a leading global mining company based in Chile and an investor in the Mt. Holland lithium project.
The new long-term supply agreement for lithium carbonate and lithium hydroxide, signed last year, replaces the previous contract and sees the offtake volume nearly triple from 36,000 tons to 100,000 tons over seven years.
With eight facilities currently operational or under construction in North America, including standalone facilities in Michigan and Arizona, as well as six joint venture facilities with major automakers, LG Energy Solution continues to strengthen its presence in the battery technology sector.
Commenting on the agreement, Kang Yeol Lee, Senior Vice President of Procurement Center at LG Energy Solution, expressed confidence in the partnership, stating, “Partnering with major suppliers with great potentials like WesCEF, we will ensure stable procurement of key raw materials, thereby delivering advanced battery technologies at competitive prices.”