Compass Minerals to Supply LG Energy Solution with Battery-Grade Lithium Carbonate
Compass Minerals has agreed to deliver battery-grade lithium carbonate to LG Energy Solution (LGES) under a binding multiyear supply agreement.
According to the terms of the agreement, the company will give LGES up to 40% of its planned phase-one battery-grade lithium carbonate production for the first six years after the first shipment. The agreement specifies that purchase prices will be based on a market index.
Chris Yandell, head of lithium, said:
"This binding supply agreement represents an important milestone for our company’s entry into a rapidly growing domestic lithium market. We are excited to partner with a proven manufacturing leader like LGES to help enable the buildout of a robust and secure advanced battery supply chain.”
Compass Minerals is pursuing the long-term development of a 2.4 mMT LCE resource on the Great Salt Lake, which is easily accessible through existing permits, water rights, and operational infrastructure at the company's Ogden, Utah, solar evaporation facility, the largest of its kind in the Western Hemisphere.
Once it is fully operational, Compass Minerals can sell about 35 kMT of lithium carbonate equivalent (LCE) per year. The first phase of production, which will start in 2025, will have a capacity of about 11 kMT battery-grade lithium carbonate.
Source: Compass Minerals
