Skip to main content

Compass Minerals to supply LG with battery-grade lithium

Published by
Global Mining Review,


Compass Minerals has announced the signing of a non-binding Memorandum of Understanding (MOU) to supply LG Energy Solution (LGES) 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 30 000 t to 40 000 t lithium carbonate equivalent (LCE) for the project, with an initial phase-one capacity of up to 10 000 t 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.

Chris Yandell, Head of Lithium for Compass Minerals, comments:

“Our lithium vision is to support the North American battery market by accelerating the development of a sustainable and secure domestic lithium supply chain.

“Entering into this commercial relationship with a proven manufacturing leader like LGES will help enable that vision, as well as assist LGES in solidifying its US supply chain.”

As previously announced, Compass Minerals is pursuing the sustainable development of an approximately 2.4 million t LCE resource on the Great Salt Lake, readily available for extraction through existing permits, water rights, and operational infrastructure at the company’s Ogden facility, the largest of its kind in the Western Hemisphere.

Dongsoo Kim, Senior Vice President of Procurement Center at LGES, comments:

“Securing key raw materials has become critically important, in order to maintain our lead position in the global battery market.

“We believe partnering up with Compass Minerals will aid in achieving that goal while solidifying supply chain in the US.”

Compass Minerals will continue good-faith negotiations with LGES toward a binding supply agreement as part of the company’s broader lithium project commercial offtake strategy.

Read the article online at: https://www.globalminingreview.com/mining/05072022/compass-minerals-to-supply-lg-with-battery-grade-lithium/

You might also like

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

US mining news Lithium mining news North American mining news