Four-year supply deal signed with Elevra Lithium

Equivalent to 30,000 tons of lithium hydroxide, enough for 700,000 EVs

Local supply chain completed from raw materials to battery

An aerial view of LG Energy Solution's NextStar Energy factory in Canada. [LG Energy Solution]
An aerial view of LG Energy Solution's NextStar Energy factory in Canada. [LG Energy Solution]

LG Energy Solution announced Thursday that it has signed a long-term lithium concentrate supply agreement with North American lithium producer Elevra Lithium. The deal is expected to significantly strengthen the company's local supply chain — from raw material procurement to battery production — as it continues to expand its energy storage system (ESS) production capacity in North America.

Under the agreement, LG Energy Solution will receive a total of 240,000 tons of lithium concentrate over four years beginning at the end of this year. The volume is convertible to approximately 30,000 tons of lithium hydroxide — enough to produce batteries for about 700,000 high-performance electric vehicles. The material will be sourced from the North American Lithium (NAL) mine that Elevra Lithium operates in Quebec, Canada.

Lithium concentrate is a processed and refined form of lithium ore that undergoes further refining to yield lithium carbonate and lithium hydroxide. Lithium carbonate is primarily used in lithium iron phosphate (LFP) and ternary batteries, while lithium hydroxide is mainly used in high-performance, high-nickel ternary batteries.

The agreement is significant because it secures the upstream end of the value chain — covering raw materials (lithium concentrate), intermediate materials (lithium carbonate, lithium hydroxide and cathode materials) and batteries — within North America itself. By locking in pre-processing raw materials, the company expects to respond more flexibly to shifting demand for lithium carbonate and lithium hydroxide as conditions in the electric vehicle and ESS markets evolve.

The secured materials will feed into LG Energy Solution's North American production network. The company operates five ESS production hubs in the region: three wholly owned factories — in Lansing, Michigan; Holland, Michigan; and Windsor, Ontario (NextStar Energy) — and two joint-venture plants, the L-H Battery Company facility in Ohio with Honda and the Ultium Cells plant in Tennessee with GM. Through this network, the company plans to expand its North American LFP battery production capacity for ESS to more than 50 gigawatt-hours by the end of this year.

NextStar Energy in Windsor, Canada — the country's first large-scale battery factory — began mass-producing ESS batteries in November last year. LG Energy Solution plans to link Canadian raw materials with its production bases in Canada and the United States to further integrate its North American supply chain. The company also provides end-to-end ESS solutions, from cell supply through system integration, via its North American ESS system integration subsidiary Vertec.

Elevra Lithium CEO Lucas Dow said the agreement marks "an important milestone in advancing our growth strategy," adding that the company will "strengthen its business competitiveness and pursue production expansion through cooperation with LG Energy Solution."

Lee Kang-yeol, executive vice president and head of LG Energy Solution's procurement center, called the deal "an important achievement in strengthening the North American raw material supply chain and responding to the rapidly growing North American battery market." He added that the company will "enhance supply chain stability and flexibility based on a stable lithium concentrate supply and respond more swiftly to customer demand."

Meanwhile, LG Energy Solution has been rapidly expanding its global partnerships, including a recently signed strategic MOU with Indigo Technologies, a promising US electric commercial vehicle startup, centered on the supply of 46-series cylindrical batteries.


eyre@heraldcorp.com