LG Energy Solution (LGES) signed a non-binding Memorandum of Understanding (MoU) with Compass Minerals (earlier post), a provider of essential minerals. Under the terms of the MoU, Compass Minerals would supply LGES with with a battery-grade lithium product from its lithium brine development project at its Ogden, Utah, solar evaporation facility.

Per the terms of the MOU, Compass Minerals would commit, for up to seven years initially, at least 40% of its planned, annual phase-one production to LGES starting in 2025.

The MOU also includes an option for Compass Minerals to supply up to an additional 40% annually of the company’s phase-two production once the project is at full scale. The company has previously announced an expected annual commercial production capacity of 30 kMT to 40 kMT lithium carbonate equivalent (LCE) for the project, with an initial phase-one capacity of up to 10 kMT LCE coming online by 2025.

As outlined in the MOU, purchase pricing would be based on market price and sales volume thresholds would be dependent upon product qualifications.

Compass Minerals delivers essential minerals such as sulfate of potash, sodium chloride and magnesium chloride and is currently pursuing development options available to service growing US market demand for battery-grade lithium.

LGES added that this is the first lithium producer, based in the US, to partner up with the company as it looks to solidify its supply chain in the US and to cater to the growing market demand for EVs in North America.

Securing key raw materials has become critically important, in order to maintain our lead position in the global battery market. LGES will make sure to support establishment of steady supply chain in North America, while it continues to seek and acquire environmentally friendly produced battery-grade lithium worldwide.

—Dongsoo Kim, Senior Vice President of Procurement Center at LG Energy Solution

Apart from the MoU with Compass Minerals, LGES signed an MoU with SQM of Chile as the two firms agree to commit to investigate and develop joint investment projects of electro-mobility industry value chain.

LGES also executed an offtake agreement with Liontown Resources Limited for the supply of spodumene concentrate from the Kathleen Valley Lithium Project. The deal states that LGES be supplied of up to 150,000 dry metric tonnes per annum of spodumene concentrate, starting 2024.

The battery manufacturer also signed a binding lithium hydroxide offtake agreement with Germany’s Vulcan Energy Resources Ltd. earlier this year for at least 41,000 tonnes of battery grade lithium chemicals over the 5 years starting 2025.

Previously, LGES had agreed to purchase up to 150,000 tonnes a year of battery-grade lithium as part of a six-year “take-or-pay” agreement from Vancouver-based Sigma Lithium in October of last year.