Page 162 - CW E-Magazine (27-2-2024)

News from Abroad

SECURING SUPPLIES
LG Energy Solution inks lithium supply deal

with WesCEF

Korea’s LG Energy Solution collaboration in upstream minerals and
(LGES) has inked a second offtake chemical processing. By expanding
agreement with Australian chemicals partnership with a competitive sup-
and fertiliser conglomerate, Wesfarmers plier like WesCEF, LGES is devoting
Chemicals, Energy and Fertilisers its efforts to establishing structurally-
(WesCEF) for lithium concentrate. sound and sustainable supply chain
for IRA-compliant critical minerals,
Under the agreement, WesCEF will through which the company will also
supply LGES up to 85,000-tonnes be able to secure long-lasting cost-com-
of lithium concentrate, which could petitiveness.
be utilised in producing around
11,000-tonnes of lithium hydroxide, WesCEF’s lithium hydroxide will As part of its efforts to further
a crucial raw material for cathodes to be produced from the Mt. Holland lithi- enhance its lithium supply chain, LGES
be used in US Inflation Reduction Act um project in Western Australia. One has also secured a partnership with
(IRA)-compliant batteries for the North of the largest hard-rock lithium projects SQM, a global mining company based
American market. globally, the Mt. Holland lithium pro- in Chile and also an investor in the
ject is currently under construction, and Mt. Holland lithium project, as two
The offtake agreement solidifies production is expected in the first half companies signed a new long-term supply
LG Energy Solution’s partnership with of 2025. The project has secured over agreement for lithium carbonate and
WesCEF, which is built on the company’s Australian $2-bn from its joint venture lithium hydroxide last year. In this new
initiative to deliver IRA-compliant partners WesCEF and Sociedad Química contract that replaces the previous one
batteries to its customers with speed y Minera (SQM), with Covalent Lithi- in force, the offtake amount has nearly
and in scale. The two companies have um acting as the manager appointed tripled from the remaining contract volume
been working together since 2022, by the joint venture to develop and (36,000-tonnes) to 100,000-tonnes over
when they signed their first, five-year operate the project. seven years, thereby ensuring more sta-
offtake agreement for WesCEF’s bat- ble supply of IRA-compliant lithium
tery-grade lithium hydroxide, totalling LGES and WesCEF are also that will drive the company’s business
50,000-tonnes. exploring strategic opportunities for expansion in North America.

BATTERY MATERIAL
Panasonic Energy to source synthetic graphite

from Novonix

Japan’s Panasonic Energy, a sup- synthetic graphite in its EV battery
plier for Tesla’s electric vehicles, said manufacturing facilities in the US, with
it has struck a binding graphite supply shipments scheduled to start in 2025
agreement for its US battery plants with from Novonix’s facility in Riverside,
Australian materials company, Novonix. Tennessee (USA).

Synthetic graphite forms the main Novonix’s Riverside facility is set
component of the anodes of the lith- to become the first large-scale produc-
ium-ion batteries that power electric tion site dedicated to synthetic graphite
vehicles (EVs). The new partnership for the battery sector in North America
will enable Panasonic Energy to use and is slated to begin production in

162 Chemical Weekly February 27, 2024

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