The lithium concentrate supply can be used to produce about 11,000 tons of lithium hydroxide, a raw material for cathodes. WesCEF will produce lithium hydroxide from its Mt. Holland lithium project in Western Australia.
It expects to start production by the first half of 2024. The Mt. Holland project is currently under construction.
Through their offtake agreement, LGES and WesCEF aim to deliver top-quality IRA-compliant batteries to customers. The Inflation Reduction Act (IRA) has boosted electric vehicle (EV) investments in the United States. As an industry leader, in line with the global trend of electrification and corresponding clean energy policies, they are committed to sustainability in all aspects of their business, including the supply chain.
Partnering with major suppliers like WesCEF, LG Energy Solution is striving to ensure stable procurement of key raw materials, delivering advanced battery technologies at competitive prices. Kang Yeol Lee, Senior Vice President of Procurement Center at LG Energy Solution, stated, “We are upholding the value of sustainability in not just our products but every aspect of our business.” LG Energy Solution is building a battery plant in Arizona to meet IRA requirements and play a crucial role in North America’s supply chain.
The South Korean company is a longtime Tesla supplier. Once the Arizona plant is constructed, LG Energy Solution will also produce 4680 batteries in North America.