SEOUL (Reuters) - South Korean battery maker LG Energy Solution said on Friday it has signed agreements on lithium and cobalt sourcing with three Canadian mining firms in a bid to expand its footprint in North America.
The Tesla (NASDAQ:TSLA) supplier said in a statement the agreements were part of an effort to expand mid- to long-term supply contracts with companies that mine and process key battery materials in North America.
The U.S. Inflation Reduction Act (IRA), signed into law by U.S. President Joe Biden in August, requires a percentage of critical minerals used in electric vehicle (EV) batteries come from the United States or an American free-trade partner.
LG said the three Canadian mining firms, Electra, Avalon and Snowlake, will supply LG with 7,000 tonnes of cobalt sulfate for three years from 2023, 55,000 tonnes of lithium hydroxide for five years from 2025, and 200,000 tonnes of lithium hydroxide for 10 years, respectively.