LG Energy Solutions signs contract with German CO2-free lithium producer Vulcan Energie Ressourcen

by   CIJ News iDesk III
2021-07-20   09:57

The two companies LG Energy Solutions (LGES) and Vulcan Energie Ressourcen GmbH sign a lithium hydroxide purchase agreement. From 2025, the world's largest manufacturer of lithium-ion batteries will be purchasing climate-friendly lithium from Germany. The aim is to strengthen the European business location and further decarbonise the automotive industry's supply chain.

As the world's largest manufacturer of lithium-ion batteries for electric vehicles, LGES is geared towards a green future. To make this possible, the company signed a lithium hydroxide purchase agreement with Vulcan Energie Ressourcen GmbH. With the cooperation, both companies want to strengthen the independence and economic power of the European battery industry.

The agreement has an initial term of five years, which can be extended for a further five years. Commercial delivery is scheduled to start in 2025. LGES will purchase 5,000 tons of recycled lithium hydroxide in battery quality in the first year and increase this to 10,000 tons per year from the second year of the contract term.

The start of acceptance is based on Vulcan's completion of the production facilities. The first pilot system is already in operation in Rhineland-Palatinate. From 2025 a total of five plants will produce around 40,000 tons of LCE of the valuable metal annually. This means that an annual production volume of one million e-cars can be achieved.

“Being able to supply the largest battery manufacturer for electromobility in the future is a milestone! The mark that LGES is setting in an entire industry is remarkable. The decarbonization of the automotive supply chain is one of the most important levers for the success of electromobility. It was important to us to be able to maintain short transport routes in order to keep our climate advantage high. With the targeted battery production in Europe, lithium will remain in the region and strengthen our economic area. That was important to us!,“ Comments Horst Kreuter, Managing Director of Vulcan.