LG Chem inks lithium hydroxide deal with Chinese firm
Cathode material for EV batteries / Courtesy of LG Chem
By Jun Ji-hye
LG Chem has signed a deal with China-based Jiangxi Ganfeng Lithium, under which the Chinese company will supply 48,000 tons of lithium hydroxide for the Korean firm's manufacturing of batteries for electric vehicles (EV), LG Chem said Wednesday.
Lithium hydroxide is one of the core raw materials in the production of EV batteries as it becomes a cathode when being synthesized with nickel.
The nation's leading chemical company said 48,000 tons of lithium hydroxide is capable of producing batteries for about 1 million high-energy EVs that can travel a distance of 320 kilometers per charge.
In a bid to secure a large quantity of lithium hydroxide, the firm had also signed a deal with Canada's Nemaska Lithium in June, securing 35,000 tons of lithium hydroxide.
The two deals enable LG Chem to receive a total of 83,000 tons of lithium hydroxide.
Lithium hydroxide has recently been in the limelight as it is easy to be synthesized with nickel that raises the capacity of EV batteries.
The Korean company has made visible achievements in securing key materials for EV batteries such as cobalt as well as lithium hydroxide.
In April, LG Chem announced a decision to form two joint ventures with the Chinese firm, Huayou Cobalt, in a bid to ensure a stable supply of cobalt.
“As the EV market has been growing, competitive power involving raw materials for EV batteries has become more important,” said Yoo Ji-young, president of the advanced materials company at LG Chem. “We will continue to secure distinguished competitiveness in securing raw materials and nurture our capabilities in mass-production.”