LG Chem signs supply contract with Ganfeng Lithium
The South Korean battery manufacturer LG Chem has signed an agreement with the Chinese Ganfeng Lithium to supply 48,000 tonnes of lithium hydroxide for electric vehicle batteries until 2022.
This is sufficient material resource to manufacture enough batteries for one million EVs with a range up to 320 km, according to LG. Lithium hydroxide is one of the key ingredients for EV batteries.
Recently, LG Chem also signed a five year agreement with Nemaska Lithium for the delivery of 7,000 tonnes of lithium per year until 2022. The agreement will begin delivery in the second half of 2020. The total amount of lithium to be delivered in this agreement is 83,000 tonnes.
In April, LG also announced two joint ventures with the Chinese cobalt supplier Huayou Cobalt for basic material and for the manufacture of complete cathodes, respectively. The production here will also begin in 2020. The resource supply is key between the three agreements for LG Chems plans.
LG Chem operates factories to manufacture EV batteries in South Korea, China, the USA and Poland. A second battery factory in China is currently being planned. Construction will begin in October. The main customers for LG Chem include GM, Volvo, Renault, Hyundai and their subsidiary Kia. The German battery assembly centre (BMZ) has signed an agreement with the South Koreans for the delivery of several hundred million battery cells by the end of 2022.