LG Energy Solution Secures 240,000 Metric Tons of Lithium Concentrate in Canada, Strengthening North American Supply Chain

Agreement with Elevra Lithium... Lithium concentrate supply for four years

Enough to produce batteries for 700,000 electric vehicles

North American integration from raw material sourcing to battery production

LG Energy Solution is strengthening its North American battery materials supply chain by securing 240,000 metric tons of Canadian lithium concentrate.

A view of LG Energy Solution's NextStar Energy plant in Canada. LG Energy Solution

LG Energy Solution said on Oct. 8 that it had signed a long-term lithium concentrate supply agreement with Elevra Lithium, a North American lithium producer.

Under the agreement, LG Energy Solution will receive a total of 240,000 metric tons of lithium concentrate over four years, starting at the end of 2026. This amount can be converted into approximately 30,000 metric tons of lithium hydroxide, enough to produce batteries for about 700,000 high-performance electric vehicles. The material will be produced at the North American Lithium (NAL) mine, which Elevra Lithium operates in Quebec, Canada.

Lithium concentrate is produced by processing and concentrating lithium ore, and is refined into lithium carbonate and lithium hydroxide. Through this agreement, LG Energy Solution has secured a North American starting point for a supply chain that extends from raw materials to cathode materials and battery production. The company expects this to give it flexibility in using raw materials in response to demand in the electric vehicle and energy storage system (ESS) markets.

The company plans to link the secured materials to its North American battery production sites. LG Energy Solution has secured five ESS battery production sites in the United States and Canada, and plans to expand its North American production capacity for lithium iron phosphate (LFP) batteries for ESS to more than 50 GWh by the end of 2026.

Lee Kangyeol, head of LG Energy Solution's Purchasing Center, said, "This agreement is an important achievement in strengthening our North American raw materials supply chain and responding to the rapidly growing North American battery market. By ensuring a stable supply of lithium concentrate, we will enhance the stability and flexibility of our supply chain and respond more quickly to customer demand."

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