LG Chem signs five-year contract to receive Canadian lithium hydroxide

Lim Chang-won Reporter Posted : 2018-07-04 11:22 Updated : 2018-07-04 11:22
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[LG Chem]



SEOUL -- LG Chem, a major South Korean chemical company known for electric car batteries, signed a five-year contract with Nemaska Lithium of Canada to receive 7,000 tons of battery grade lithium hydroxide per year.

The deal is part of LG Chem's efforts to secure a stable supply network of raw materials for electric vehicle batteries. Nemaska Lithium will supply lithium hydroxide for an initial five-year period starting in October 2020.

In April, LG Chem and Huayou Cobalt, a major cobalt supplier in China, agreed to jointly produce key materials for lithium-ion batteries -- precursor and cathode materials. LG Chem operates battery plants in China, the United States and Poland.

"We are pleased with this first step towards establishing a long-term commercial relationship between LG and Nemaska Lithium," Nemaska Lithium CEO Guy Bourassa said in a statement.