LG Energy Expanding its Supply Chain for Lithium Procurement

LG Energy Solution, a South Korean company, has signed a second offtake agreement with Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) of Australia to expand its supply chain for lithium procurement. As a part of the deal, WesCEF will supply 85,000 tons of lithium concentrate to LG Energy, which can produce about 11,000 tons of lithium hydroxide.

This agreement comes after LG Energy's previous deal for 50,000 tons of WesCEF's battery-grade lithium hydroxide in 2022. WesCEF's lithium hydroxide will be produced from the Mt. Holland lithium project in Western Australia, which is currently under construction and is expected to start operations by the first half of 2025.

Last week, LG Energy announced its plans to increase its presence in India's passenger vehicle market. The company's India unit is the main supplier of battery cells to electric scooter makers such as SoftBank Group-backed Ola Electric and domestic rival TVS.

In 2023, LG Energy signed a supply deal with Chile's SQM to source 100,000 tons of lithium for seven years. Lithium is extensively used in various industries, particularly rechargeable lithium-ion batteries, which power everything from smartphones and laptops to electric vehicles and grid-scale energy storage systems.