LG Energy Solution of South Korea Signs Contract to Procure 240,000 Tons of Canadian Lithium Concentrate

en.Wedoany.com Reported - On October 8, South Korean battery manufacturer LG Energy Solution signed a binding spodumene concentrate purchase agreement with Australian lithium mining company Elevra Lithium, providing for the supply of a total of 240,000 dry metric tons of spodumene concentrate from 2026 to 2029. The product comes from Elevra's North American Lithium (NAL) mine in Quebec, Canada, which is already in production. The contract is scheduled to begin first deliveries in 2026 and involves LG Energy Solution's raw material supply business for electric vehicle and energy storage batteries in North America.

According to the supply plan published by Elevra, the base contract delivery volume in 2026 is 30,000 dry metric tons, 60,000 dry metric tons in each of 2027 and 2028, and increases to 90,000 dry metric tons in 2029. The two parties also agreed on an additional optional supply volume of up to 90,000 dry metric tons, but this portion requires a separate agreement between the two parties and is not included in the confirmed base purchase volume. The contract term is calculated from the date of first shipment, and the supply year arrangement continues through 2029.

The purchase price adopts a pricing mechanism linked to the market price of spodumene concentrate and is adjusted according to the lithium content of the delivered product. The two companies did not disclose a fixed purchase unit price or total contract amount. The supply agreement covers spodumene concentrate products, and it has not yet been clarified which lithium salt processing company will subsequently undertake the conversion into lithium carbonate or lithium hydroxide.

The North American Lithium mine is owned and operated by Elevra and has established spodumene concentrate production capacity. In September 2026, Elevra published the pre-feasibility study results for the brownfield expansion of the mine, planning to invest approximately CAD 366 million to expand the processing capacity of the beneficiation system. After completion of the expansion, the planned average annual spodumene concentrate production is expected to reach 373,000 tons. The project plans to begin the first phase of capacity increase in mid-2027, and the existing operating facilities will undertake the initial supply tasks under the LG Energy Solution contract.

LG Energy Solution has battery production facilities in Canada and the United States, and the spodumene concentrate procured under this contract will enter its North American battery material supply arrangements. The announcements by both parties did not specify the specific concentrate conversion plant, product transportation routes, or final delivery locations for each batch of goods.