LG Energy Solution to acquire stake in Australian lithium supplier

LG Energy Solution will acquire 7.9 percent of Australia-based Green Technology Metals for a stable supply of lithium, the key critical mineral in making electric vehicle (EV) batteries.

LG Energy Solution employees pose with the company's cylindrical batteries [LG ENERGY SOLUTION]

LG Energy Solution will acquire 7.9 percent of Australia-based Green Technology Metals for a stable supply of lithium, the key critical mineral in making electric vehicle (EV) batteries.

The Korean battery maker said Friday it signed an agreement with the Australian lithium miner to acquire an approximate 7.89 percent stake and access to 25 percent of its annual output of lithium ore concentrate for the next five years.

Lithium ore concentrate is used as a feedstock to extract lithium hydroxide, one of the critical minerals to make cathode materials, which determines the power of an EV battery and accounts for 40 percent of battery cost.

Details about the size of the investment have not been disclosed.

Green Technology Metals owns and operates four lithium mines in North America. LG Energy Solution will be supplied with the lithium ore concentrate mined from the Seymour block in Ontario, with mineral deposits of some 10 million tons.

"The latest cooperation is very meaningful that we will be able to secure critical minerals in the North America region, which is a key market," said Kim Myung-hwan, chief procurement officer at LG Energy Solution.

BY SARAH CHEA [chea.sarah@joongang.co.kr]