LG headquarters building in western Seoul is seen in this photo. (Yonhap)
South Korean battery maker LG Energy Solution Ltd. said Tuesday it has struck a deal to buy a 7.5 percent stake in an Australian chemical company for 12 billion won ($10.8 million) for a stable supply of critical metals used in electric vehicle batteries.
LG Energy Solution, the wholly owned subsidiary of LG Chem Ltd., said it agreed to buy new shares issued by Queensland Pacific Metals (QPM), which produces nickel and cobalt, key materials for lithium-ion batteries.
QPM is the 100 percent owner of the Townsville Energy Chemicals Hub project, which aims to process high-grade ore imported from New Caledonia to make nickel and cobalt sulfate in 2023.
LG Energy Solution said it has signed a 10-year offtake agreement with QPM to buy 7,000 tons of nickel and 700 tons of cobalt a year starting in late 2023.
The EV battery maker, which supplies to Tesla, General Motors and several other automakers, said the deal is aimed at securing a stable supply chain for EV batteries.
LG Energy Solution is set to roll out lithium-ion batteries with higher nickel content later this year to increase the battery's energy density and capacity. (Yonhap)