[News Article] LG Energy Solution to strike natural graphite supply deal with Syrah Resources
LG Energy Solution to strike
natural graphite supply deal with Syrah Resources By Son Ji-hyoung, The Korea Herald - South Korean lithium-ion
battery maker LG Energy Solution announced Thursday it has signed a provisional
deal with Australian graphite supplier Syrah Resources to diversify its supply
sources for making graphite anodes typically used in electric car batteries.
Under a memorandum of
understanding, LG and Syrah on Wednesday tentatively agreed on a 2,000 metric
ton graphite supply deal in 2025 as Syrah's graphite mines become operational.
The two companies will ink the final supply contract by the end of 2022.
The supply deal of the critical
material is designed to reduce LG's reliance on graphite imports from China in
the wake of the August signing of the Inflation Reduction Act by the Joe Biden
administration.
Some 70 percent of graphite in
the world have originated from China in 2021, according to an estimate by the
International Energy Agency. About 66 kilograms of graphite is required for an
electric vehicle.
Syrah operates a mine for
active anode material in Mozambique and is set to begin operation of a graphite
processing facility in Louisiana, the United States, partly backed by the US
Department of Energy's $220 million grant. Syrah's graphite will allow LG
Energy Solution to supply batteries to electric vehicles that meet requirements
for car buyers' tax credit under the IRA, according to LG.
LG will also be able to reduce
the cost of graphite imports and maintain cost competitiveness of its battery
products, LG said in a statement. LG is going to greater lengths
to restructure its critical material supply chain outside China for its
lithium-ion batteries.
Most recently in September, LG
signed a deal with Canadian firm Electra Battery Material over the supply of
7,000 tons of cobalt sulfate for three years; Avalon Advanced Materials for
55,000 tons of lithium hydroxide for five years; and Snow Lake Lithium for a
10-year supply of 200,000 tons of lithium hydroxide.
LG Energy Solution has also
secured the supply of lithium ore, lithium hydroxide and lithium carbonate with
partners such as Canada-based Sigma Lithium Resources, US-based Compass
Minerals, Australia-based Vulcan Energy Resources and Liontown Resources.
Source: www.koreaherald.com/view.php?ud=20221020000509
2022.10.21
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