MEMBER NEWS: LG Energy Solution signs Lithium Offtake Agreement with WesCEF

February 16, 2024

MEMBER NEWS: LG Energy Solution signs Lithium Offtake Agreement with WesCEF

LG Energy Solution, the world's third-largest electric vehicle (EV) battery maker, is increasing its lithium supply from Australia to benefit from a US policy favouring products from the country or its trading partners. The lithium hydroxide from Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) meets the requirements of the US Inflation Reduction Act, offering benefits to EV customers.

LG Energy has signed an offtake agreement to purchase up to 85,000 tons of lithium concentrate from Wesfarmers this year. The move aligns with the IRA, providing incentives for EVs assembled in the US with batteries sourced from the country or its trade partners like Australia. LG Energy is also the cell supplier for Tesla, and it previously agreed to buy 50,000 tons of battery-grade lithium hydroxide from WesCEF starting in 2025. The production is set to begin in the first half of 2025 at the Mt. Holland lithium project in Western Australia.

🇦🇺🇰🇷 WesCEF is part of the AKBC Critical Minerals sub-committee. If you are interested in joining the sub-committee, please contact us at info@akbc.com.au 🇦🇺🇰🇷