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LG Energy Solution has entered into a binding long-term purchase agreement with Australian Mines for nickel and cobalt. The battery manufacturer thus secures access to 71,000 tonnes of nickel and 7,000 tonnes of cobalt for six years from the end of 2024.
The South Korean manufacturer will buy all of the production from Australian Mines Limited. According to LG Energy Solution, the company has secured “100% rights to battery-grade nickel and cobalt materials from Australian mines.” The raw materials are to come from the Sconi mine in North Queensland.
LGES says it will use these materials to make batteries for 1.3 million “high performance EVs.” Each of these vehicles will have a range of over 500 kilometers. LGES does not say what battery capacity it expects per vehicle.
Delivery is not expected before the end of 2024, as the Sconi project is currently still under development. LGES and Australian Mines rely on the so-called dry stacking method, which does not require the construction of storage ponds, dams and retention ponds for polluted wastewater from the extraction process. This method is considered more expensive, but also more environmentally friendly.
“Securing key raw materials and a responsible battery supply chain has become an essential part of achieving better control within the industry, as the demand for electric vehicles around the world has increased in recent years,” said said Jong-hyun Kim, president and CEO of LG Energy. Solution. “LGES will consolidate its position as the world’s leading battery manufacturer through a constant supply of raw materials for electric vehicle batteries.
In June, LGES signed a supply agreement for 7,000 tonnes of nickel and 700 tonnes of cobalt per year with Queensland Pacific Metals (QPM). Supply is expected to begin at the end of 2023. In July, it was announced that LGES would also purchase lithium hydroxide mined in the Upper Rhine region from the German-Australian company Vulcan Energy.
prnewswire.com
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