Battery maker LG Energy Solution, a subsidiary of LG Chem, has signed a lithium-ion battery materials off-take deal with Vulcan Energy.
The Australian firm will supply up to 45 metric tonnes of lithium hydroxide over the five-year term of the deal.
Pricing will be based on market prices for lithium hydroxide.
The five-year agreement could be extended by a further five years, with the start of commercial delivery set for 2025.
LG will purchase 5,000 metric tonnes of battery grade lithium hydroxide the first year, ramping up to 10,000 metric tonnes per year during the subsequent years of the deal.
Vulcan said conditions precedent to the start of commercial delivery include execution of a definitive formal offtake agreement on materially the same terms by the end of November 2021, successful start of commercial operation and full product qualification.
Vulcan managing director, Dr. Francis Wedin, said: “This is the first binding lithium off-take term sheet for the Zero Carbon Lithium™ Project, so it is fitting that it is with the largest EV battery producer in the world. LGES’s operations are of course global, but it is already producing batteries in Europe.
“The agreement is in line with our strategy to work with Tier One battery and automotive companies in the European market.”