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Released September 28, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Global lithium-ion battery maker LG Energy Solution (LGES) (Seoul, South Korea) has signed material-supply agreements with three Canadian suppliers, which will shore up the North American electric vehicle (EV) supply chain, the company announced last week.
"As we have recently announced our mid- to long-term strategy to focus on North America, the fastest growing EV market, these partnerships serve as a crucial step towards securing a stable key raw material supply chain in the region," Chief Executive Officer Youngsoo Kwon, said in a related press release. "By constantly investing in upstream suppliers and establishing strategic partnerships with major suppliers of critical minerals, LGES will continue to ensure the steady delivery of our top-quality products, thereby further advancing the global transition to EVs and ultimately to a sustainable future."
Earlier this year, the Canadian government announced a budget commitment of C$3.8 billion (US$3 billion) to support domestic extraction and production of critical minerals. For more information, see Industrial Info's April 13, 2022, article - Canadian Government to Support Mining of Critical Minerals.
LGES has signed a binding agreement with Electra Battery Materials Corporation (NASDAQ:ELBM) (Toronto, Canada) for 7,000 tons of cobalt sulfate for three years beginning in 2023. Electra is the only supplier capable of refining cobalt sulfate in North America, according to the press release. The material will be supplied from Electra's North Cobalt Yukon Hydromet Cobalt-Nickel Refinery, north of Toronto, about 350 miles from the U.S. border and accessible by road or rail. The project's development consists of four phases, to create a fully integrated battery materials park.
Phase 1 involves restarting the refinery, which has been under care and maintenance since 2015, and replacing equipment, to produce 5,000 tons per year of battery-grade cobalt sulfate to be shipped to the U.S. The refinery would have an operational capacity of 6,500 tons per year. Electra expects it to open in December. Ausenco Engineering Canada, a subsidiary of Ausenco Limited (Brisbane, Australia), is performing engineering, procurement and construction services.
Phase 2 involves the construction of a recycling plant that is expected to recover and supply raw materials such as lithium, nickel, cobalt, copper and graphite. Construction of a Phase 3 battery-grade nickel sulfate plant is expected to wrap up in late 2024. A Phase 4 battery precursor materials plant will be built at the site or elsewhere in North America in late 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Industry Project Database can click here for related project reports.
In addition, LGES has signed non-binding memorandums of understanding (MOU) with two lithium suppliers.
Snow Lake Resources (NASDAQ:LITM) (Winnipeg) will supply 11,000 tons per year of lithium hydroxide for five years, initially starting in 2025, from its Winnipeg Thompson Brothers Lithium Hydroxide Plant. The plant will extract the material from lithium spodumene concentrate railed 700 kilometers from a lithium mine and concentrator. Subscribers can see reports for the lithium hydroxide and mining projects.
Avalon Advanced Materials Incorporated (Toronto) will supply 20,000 tons per year of lithium hydroxide for 10 years, once production begins in 2025, from a production plant in Thunder Bay, Ontario. The lithium concentrates will come from a planned mine and mill nearby. Subscribers can see reports for the lithium hydroxide and mining projects.
LGES has made other moves to shore up its lithium-ion battery production, including setting up a joint venture with Honda Motor Company (NYSE:HMC) (Tokyo, Japan)--which involves US$4.4 billion in investment to set up a new U.S. manufacturing plant in an as-yet-determined location. Subscribers to the GMI Industrial Manufacturing Project Database can click here for a related project report. For more information on the joint venture and the state of the U.S. EV market, see September 1, 2022, article - EV Moves in U.S. Market Could Ease Some Dependencies.
Industrial Info is tracking US$11.58 billion worth of projects involving LGES, including US$9.9 billion in the U.S. Click here for a full list.
Major U.S. automaker Ford Motor Company (NYSE:F) (Dearborn, Michigan) also has signed battery material-supply agreements. For more information, see July 26, 2022, article - Ford Announces Mining MOUs to Support EV Batteries.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"As we have recently announced our mid- to long-term strategy to focus on North America, the fastest growing EV market, these partnerships serve as a crucial step towards securing a stable key raw material supply chain in the region," Chief Executive Officer Youngsoo Kwon, said in a related press release. "By constantly investing in upstream suppliers and establishing strategic partnerships with major suppliers of critical minerals, LGES will continue to ensure the steady delivery of our top-quality products, thereby further advancing the global transition to EVs and ultimately to a sustainable future."
Earlier this year, the Canadian government announced a budget commitment of C$3.8 billion (US$3 billion) to support domestic extraction and production of critical minerals. For more information, see Industrial Info's April 13, 2022, article - Canadian Government to Support Mining of Critical Minerals.
LGES has signed a binding agreement with Electra Battery Materials Corporation (NASDAQ:ELBM) (Toronto, Canada) for 7,000 tons of cobalt sulfate for three years beginning in 2023. Electra is the only supplier capable of refining cobalt sulfate in North America, according to the press release. The material will be supplied from Electra's North Cobalt Yukon Hydromet Cobalt-Nickel Refinery, north of Toronto, about 350 miles from the U.S. border and accessible by road or rail. The project's development consists of four phases, to create a fully integrated battery materials park.
Phase 1 involves restarting the refinery, which has been under care and maintenance since 2015, and replacing equipment, to produce 5,000 tons per year of battery-grade cobalt sulfate to be shipped to the U.S. The refinery would have an operational capacity of 6,500 tons per year. Electra expects it to open in December. Ausenco Engineering Canada, a subsidiary of Ausenco Limited (Brisbane, Australia), is performing engineering, procurement and construction services.
Phase 2 involves the construction of a recycling plant that is expected to recover and supply raw materials such as lithium, nickel, cobalt, copper and graphite. Construction of a Phase 3 battery-grade nickel sulfate plant is expected to wrap up in late 2024. A Phase 4 battery precursor materials plant will be built at the site or elsewhere in North America in late 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Industry Project Database can click here for related project reports.
In addition, LGES has signed non-binding memorandums of understanding (MOU) with two lithium suppliers.
Snow Lake Resources (NASDAQ:LITM) (Winnipeg) will supply 11,000 tons per year of lithium hydroxide for five years, initially starting in 2025, from its Winnipeg Thompson Brothers Lithium Hydroxide Plant. The plant will extract the material from lithium spodumene concentrate railed 700 kilometers from a lithium mine and concentrator. Subscribers can see reports for the lithium hydroxide and mining projects.
Avalon Advanced Materials Incorporated (Toronto) will supply 20,000 tons per year of lithium hydroxide for 10 years, once production begins in 2025, from a production plant in Thunder Bay, Ontario. The lithium concentrates will come from a planned mine and mill nearby. Subscribers can see reports for the lithium hydroxide and mining projects.
LGES has made other moves to shore up its lithium-ion battery production, including setting up a joint venture with Honda Motor Company (NYSE:HMC) (Tokyo, Japan)--which involves US$4.4 billion in investment to set up a new U.S. manufacturing plant in an as-yet-determined location. Subscribers to the GMI Industrial Manufacturing Project Database can click here for a related project report. For more information on the joint venture and the state of the U.S. EV market, see September 1, 2022, article - EV Moves in U.S. Market Could Ease Some Dependencies.
Industrial Info is tracking US$11.58 billion worth of projects involving LGES, including US$9.9 billion in the U.S. Click here for a full list.
Major U.S. automaker Ford Motor Company (NYSE:F) (Dearborn, Michigan) also has signed battery material-supply agreements. For more information, see July 26, 2022, article - Ford Announces Mining MOUs to Support EV Batteries.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
