This comes after reports suggested that LG Corp’s electronics unit LG Electronics is planning to expand its electric vehicles supply chain
LG Energy Solutions and Australian minerals company Infinity Lithium have entered into an agreement under which Infinity Lithium will supply battery-grade lithium hydroxide from its San Jose lithium project to LG Energy.
Infinity Lithium said that the agreement is for a potential supply of 5 years and could continue for another 5 years.
Infinity further said that both the companies would consult towards finalising the binding off-take agreement within 12 months of signing the agreement.
Infinity CEO and Managing Director, Ryan Parkin said, “We are delighted to announce the commencement of a long-term commercial relationship with tier one partner LG Energy Solution, welcoming the potential to support a global leading lithium-ion battery producer to secure essential facets of the supply chain.”
This comes after reports suggested that LG Corp’s electronics unit LG Electronics is planning to expand its electric vehicles supply chain. It was further reported that Canadian auto component supplier Magna International will buy a 49 per cent stake in that unit to create a new joint venture called LG Magna e-Powertrain which will be headquartered in Incheon, South Korea.
Moreover, there have been talks about how the conglomerate’s other units including LG Chem, LG Display and LG Innotek will enable the strengthening of its EV business as it will have easier access to key technology in-house.
The move to expand its lithium hydroxide supply chain seems to be a step towards a similar goal of expanding in-house EV technology.
Under a non-binding agreement, the purchase price will be based on market prices for lithium hydroxide, and there is a potential for the arrangement to continue for a further five years, the Australian company said.
