Vulcan Energy inks binding lithium hydroxide supply deal with LG Energy

LG

30/01/2022 22:38

Jan 31 (Reuters) - Lithium miner Vulcan Energy Resources
 VUL.AX  said on Monday it finalised a binding agreement to sell
lithium hydroxide to the battery unit of South Korea's LG Chem
 051910.KS  from its project in Germany. 
    The agreement will see LG Energy Solution buy up to 50,000
metric tonnes of battery-grade lithium chemicals over five years
starting in 2025 with an option to extend the agreement for a
further five years. 
    The Australia-listed firm said pricing will be based on
lithium-hydroxide market prices.    
    LG Energy, which produces lithium-ion batteries in Poland,
the United States, China and South Korea, is expanding capacity
to meet the growing demand for electric vehicles. 
    Vulcan, which aims to produce lithium hydroxide from
Germany's Upper Rhine Valley, has already inked supply deals
with Volkswagen  VOWG_p.DE  and Stellantis  STLA.MI  among
others. 
    Vulcan's process for extracting lithium will produce
renewable power and emit no carbon dioxide, it said, unlike
Australia's hard rock lithium mining.  urn:newsml:reuters.com:*:nL1N2OV03W

 (Reporting by Harish Sridharan in Bengaluru; Editing by Sandra
Maler)
 ((Harish.Sridharan@thomsonreuters.com;))