Umicore and LG Chem have entered into a multi-year strategic supply agreement for NMC (Nickel-Manganese Cobalt) cathode materials to meet LG Chem’s needs from Umicore plants in Poland, South Korea and China.
The supply contract comes into force in 2020 and covers a total volume of 125,000 metric tons. Umicore and LG Chem also entered into a technology license agreement covering basic intellectual property rights.
The supply agreement is designed to help LG Chem meet the growing demand for lithium-ion batteries. In addition, the South Korean company will benefit from Umicore’s experience in developing and manufacturing cost-optimized cathode materials. The majority of the volumes covered by this agreement will be supplied from Umicore’s plant in Poland.
The technology agreement also provides for a cross-licensing agreement covering basic intellectual property rights. Under this agreement, the two companies share the rights to a selection of basic global patents for various NMC cathode materials used in automotive and energy storage applications.
Umicore is also assisting LG Chem in recycling the production residues. In addition, the terms of a possible long-term cooperation in battery recycling are currently being negotiated.