LG Energy signs battery-grade lithium supply deal with Compass Minerals
Published by
ScrapPrices
Published on June 29,2022 09:00 AM Metals
South Korean battery maker LG Energy Solutions (LGES) (373220.KS) said on Wednesday it had entered into a non-binding deal for battery-grade lithium supply with Compass Minerals (CMP.N) while negotiations for a final agreement were ongoing.
LG Energy signs battery-grade lithium supply deal with Compass Minerals

June 29 (Reuters) - South Korean battery maker LG Energy Solutions (LGES) (373220.KS) said on Wednesday it had entered into a non-binding deal for battery-grade lithium supply with Compass Minerals (CMP.N) while negotiations for a final agreement were ongoing.

Prices of battery metals including lithium, cobalt and nickel have rallied to multi-year highs due to red-hot demand for electric vehicles (EVs).

Compass is the first U.S.-based lithium producer to partner with the battery manufacturer as it looks to solidify its supply chain in North America to meet soaring demand for EVs, LGES said.

Under the deal, LG would receive as much as 40% of lithium carbonate and lithium hydroxide that Compass produces for seven years, starting 2025.

Separately, LGES which also supplies batteries to Tesla Inc (TSLA.O) said it was reassessing a $1.3 billion investment plan for an Arizona factory due to "unprecedented" economic conditions. 

LGES has also signed deals this year with Vulcan Energy Resources (VUL.AX) and Liontown Resources (LTR.AX) for battery minerals.

MORE METALS NEWS
August 12,2022 08:00 AM
Slowing economic growth is weighing on industrial metals prices but zinc and aluminium are likely to outperform if sky-high energy prices force European smelters to cut output further, leading to larger shortages.
August 11,2022 07:00 AM
Speculators in the copper market, viewed as an indicator of the health of the economy, are betting a global downturn means the metal used in power and construction has further to fall, despite its recent rebound.
August 10,2022 08:00 AM
Shouting over the clanging of machinery, Gerd Roeders is reluctantly preparing for the temporary shutdown of his German aluminium foundry to survive Europe's growing gas crunch.