Compass Minerals Signs Binding Agreement to Supply LG Energy Solution with Battery-Grade Lithium Carbonate
Compass Minerals has signed a binding, multiyear supply agreement with LG Energy Solution (LGES) to provide battery-grade lithium carbonate.
The company will deliver up to 40% of its planned, phase-one battery-grade lithium carbonate production to LGES for an initial 6-year term from supply commencement per the terms of the agreement. Purchase pricing will be based on market index under the agreement.
“This binding supply agreement represents an important milestone for our company’s entry into a rapidly growing domestic lithium market,” said Chris Yandell, head of lithium. “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 sustainable development of an approximately 2.4 mMT LCE resource on the Great Salt Lake, readily available for extraction 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.
As previously announced, Compass Minerals expects an annual commercial production capacity of approximately 35 kMT lithium carbonate equivalent (LCE) once fully operational, with an initial phase-one capacity of approximately 11 kMT battery-grade lithium carbonate coming online by 2025.
Read the full news release for more information.