November 27, 2024

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(LG Energy Solution)

Battery maker LG Energy Solution said Friday it has signed a deal with Green Technology Metals (GT1), a lithium exploration and development business, as part of efforts to establish a supply chain of critical raw materials for batteries in the North American region.

Under the deal, LGES will subscribe to 21,739,130 new shares in GT1 at a price of 0.92 Australian dollars ($0.61) per share, for a total of A$20 million. The subscription price represents 7.89 percent of GT1’s ordinary shares on issue. GT1, which is based in Australia, focuses on lithium exploration and development in Ontario, Canada.

LGES has also agreed to buy 25 percent of GT1’s spodumene concentrate production for five years from the start of commercial production. Seymour Project, GT1's flagship mining project covering some 8,941 hectares in Ontario, is expected to yield some 10 million metric tons of lithium-enriched spodumene.

Spodumene concentrate is a source of lithium, an important mineral used for making batteries.

“We have always been committed to expanding our supply chain in North America, as a steady supply of critical minerals, including lithium, is key to ensuring reliable and timely delivery of our innovative power solutions to our customers,” said Kim Myung-hwan, chief procurement officer at LG Energy Solution.

GT1 Chairman John Young said it looks forward to the collaboration with LGES as a strategic partner.

“LGES brings global scale and expertise in battery manufacturing as well as balance sheet strength as GT1 rapidly advances its integrated lithium strategy in North America,” Young said.

By Yu Ji-soo (jisooyu123@heraldcorp.com)