South Korea-based LG Energy Solution has reportedly acquired complete ownership of battery-grade cobalt and nickel resources from Australian Mines Limited amid rising worries of raw material supply.
According to credible reports, LG Energy Solution announced entering into a binding long-term offtake deal with Australian Mines Ltd. for cobalt and nickel from the Sconi Project in North Queensland. Moreover, it will be supplied as mixed hydroxide precipitate (MPH) form.
Under the deal, the battery maker will have access to 7,000 tons of cobalt and 71,000 tons of nickel for six years beginning at the end of 2024. Moreover, the six-year supply agreement would include developing batteries capable of powering 1.3 million high-performance EVs with driving ranges exceeding 500 kilometers on a full charge.
In addition to this, LG Energy Solution will acquire battery-grade materials for electric vehicles from Sconi Project in Queensland, Australian Mines' flagship project which is under development.
For the uninitiated, the Sconi Project, worth USD 1.5 billion, is a cobalt and nickel mine capable of producing high-quality battery materials and expanding the battery supply chain.
Cooperation with Australian Mines Ltd. would also assist LG Energy Solution in gaining an advantage in securing a consistent supply of critical components for EV batteries since the battle to obtain raw materials for EV batteries has become competitive due to rising worldwide demand for EVs.
LG Energy Solution, in keeping with its reputation as the world's leading battery manufacturing company, is making every possible effort to participate in and manage an open and honest supply chain of its resources in order to fulfill social responsibility and increase its competitiveness in ESG management.
Apparently, LG Energy Solution has been at the leading edge for sourcing critical raw materials for electric vehicle batteries. In June, the firm invested KRW 12 billion in Queensland Pacific Metals (QPM) for 700 tonnes of cobalt and 7,000 tonnes of nickel per year beginning in late 2023.