Tesla Inc TSLA Offerer LG energy solution (LGES) said in a statement on Friday that it had signed separate partnership agreements with three major suppliers of critical minerals in Canada to secure lithium and cobalt.
The lithium-ion battery maker shared recent precautions to safeguard minerals Snow Lake Resources Ltd. LIT, Electra Battery Materials Corporation ELBM and Avalon Advanced Materials Inc. AVLNF are aligned with the company’s strategic vision to strengthen its supply chain for key battery materials in North America.
Electra, known to be the only supplier capable of refining cobalt sulfate in North America, will supply LGES with 7,000 tonnes of cobalt sulfate for three years beginning in 2023.
Avalon will supply lithium hydroxide (11,000 tonnes per year) to LGES for an initial five-year period beginning in 2025. Snow Lake will also supply LGES with lithium hydroxide (20,000 tons per year) for a period of ten years after production starts in 2025.
Why it matters: The recently passed Anti-Inflation Act (IRA), which emphasizes the importance of EV battery components manufactured or assembled in North America, has further emphasized the importance of battery manufacturers establishing a local supply chain in North America.
In North America, LGES co-signed a non-binding MoU this year Compass Minerals International, Inc. CMP on lithium carbonate and lithium hydroxide. The company also signed a binding term sheet with Canada Sigma Lithium SGML for supplying battery grade lithium.
