South Korean battery manufacturer LG Energy Solution has signed a purchase agreement with Australian chemical company Wesfarmers Chemicals, Energy & Fertilisers (WesCEF) for up to 85,000 tons of lithium concentrate. According to LG, the material can be used to produce approximately 11,000 tons of lithium hydroxide for use in battery cathodes. No information was provided on the duration of the contract.
First production planned for 2025
WesCEF’s lithium hydroxide will be produced from the Mt. Holland lithium project in Western Australia. With the facility currently under construction, the start of production is expected for the first half of 2025. According to the company, it is one of the largest hard rock lithium projects worldwide.
Partnership since 2022
LG Energy Solution and WesCEF have been working together since 2022, when they signed their first five-year offtake agreement for WesCEF’s battery-grade lithium hydroxide totaling 50,000 tons. The materials secured through the partnership will be assembled into lithium-ion batteries at manufacturing facilities in North America, making them compliant with the Inflation Reduction Act.
