LG Energy Solutions signed a long-term supply agreement for Cobalt(II) sulfate in Canada

According to Business Korea, LG Energy Solutions has successfully obtained a large number of Cobalt(II) sulfate, the key component of electric vehicle batteries, in Canada.

Electra Battery Materials, a Canadian mining company, announced on July 24 local time that it had signed a long-term Cobalt(II) sulfate supply agreement with LG Energy Solutions.

According to the agreement, LG Energy Solutions will supply 19000 tons of Cobalt(II) sulfate to LG Energy Solutions within five years from 2025 to 2029. Last September, the two companies agreed to supply 7000 tons of Cobalt(II) sulfate within three years from 2025. The recent transaction marks a significant expansion in supply terms and quantities.

Electra is the only Cobalt(II) sulfate refiner in North America. It plans to produce Cobalt(II) sulfate in the refinery under construction in Ontario, Canada.

LG Energy Solutions has now ensured a stable supply of key minerals that meet the Inflation Reduction Act (IRA) incentive conditions for its North American factories. This diversification of supply sources has also reduced dependence on China, which accounts for 71% of the refined cobalt used in global electric vehicle batteries.