- LGES is diversifying its supply chain for natural graphite, one of the most important battery materials with the least diversified supply chain
- The Company continues to increase the competitiveness and stability of its critical mineral supply chain in North America through a series of partnerships
Seoul, South Korea, October 19, 2022 /PRNewswire/ — LG Energy Solutions (LGES; KRX: 373220) announced that it has signed a non-binding letter of intent (MoU). October 19th with Syrah Resources Limited (Syrah; ASX:SYR) on a partnership to evaluate natural graphite anode material.
Under the terms of the MoU, LGES and Syrah will test and verify Syrah’s natural graphite Vidalia production site in LouisianaUSA, which is expected to start production in 2023. Through the testing and verification procedures, the companies will ensure products meet LGES technical requirements for natural graphite and strive to finalize product specifications by the end of 2023.
Based on the results of the assessment, LGES and Syrah will also use commercially reasonable efforts to enter into a binding offtake agreement by the end of 2022. Annual sourcing targets for natural graphite will start at 2,000 tons in 2025 and increase steadily over the coming years.
“Our partnership with Syrah demonstrates our commitment to diversifying the critical minerals portfolio through direct sourcing from local and regional suppliers in North Americaespecially since natural graphite is one of the battery materials with the least diversified supply chain,” he said Youngsoo Kwon, CEO of LG Energy Solutions. “We not only want to expand our customer base, but also increase our production capacities North AmericaEnsuring a competitive local supply chain for key critical minerals will play a vital role in ensuring a stable supply of the world’s best quality products to our customers.”
“Syrah is pleased to have signed a Memorandum of Understanding with LG Energy Solution as an important step towards the supply of anode materials and…
