Vulcan Energy, LGES inks binding agreement for lithium hydroxide
Vulcan Energy Resources, the company developing Zero Carbon Lithium projects to produce both renewable geothermal energy and lithium hydroxide for electric vehicles from the same deep brine source in the Upper Rhine Valley, Germany, has announced that it has signed a binding lithium hydroxide offtake agreement with LG Energy Solution (LGES).
LGES is the second-largest battery maker in the world with over 20 percent market share and supplies its products to leading global Original Equipment Manufacturers (OEMs).
LGES is currently manufacturing lithium-ion batteries in Poland, the US, China, and South Korea, and is looking at expanding its production capacity.
The agreement is for an initial five-year term which can be extended by a further five years, with a start of commercial delivery set for 2025.
LGES will purchase between 41,000 to 50,000 metric tonnes of battery-grade lithium chemicals throughout the agreement. Pricing will be based on market prices for lithium hydroxide.
Conditions precedent include the successful start of commercial operation and full product qualification.
Dr. Francis Wedin, Managing Director, Vulcan stated "The completion of the binding lithium offtake agreement with LG, in addition to our binding lithium offtake agreements with Volkswagen Group, Stellantis, Renault Group, and Umicore, represents a globally unique achievement by the Vulcan Zero Carbon Lithium team. It means that we are fully sold out for the first five years of planned lithium production, which is an important foundation toward securing project finance. We look forward to a long and productive relationship with LGES."