SEOUL (dpa-AFX) - LG Energy Solution said it has secured 100% rights to battery-grade nickel and cobalt materials from Australian Mines Limited (AUZ.AX) amid growing concerns about future supplies of raw materials.
LG Energy Solution said it has entered into a binding long form offtake agreement with Australian Mines for nickel and cobalt, which will be supplied in the form of mixed hydroxide precipitate or MPH from the Sconi Project in North Queensland.
As per the binding long form offtake agreement between, the battery manufacturer will have access to 71,000 tonnes of nickel and 7,000 tonnes of cobalt for 6 years starting from the end of 2024.
The six-year supply deal would translate to producing batteries that can power 1.3 million high-performance electric vehicles, with driving range surpassing 500 kilometers on a single charge.
The offtake agreement states that LG Energy Solution purchase EV battery materials from Australian Mines' flagship Sconi Project based in Queensland, currently under development. Valued at US$1.5 billion, the Sconi Project is a nickel and cobalt mine, capable of creating quality battery materials and boost battery supply chain.
LG Energy Solution has invested 12 billion won to Queensland Pacific Metals (QPM) in June for 7,000 tonnes of nickel and 700 tonnes of cobalt per year for a decade starting late 2023.
Previously, LG Energy Solution has also announced its investment of 57.5 billion won in European subsidiary of Solus Advanced Materials in December for copper foil for 5 years from 2021.
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