Nemaska, LG Chem sign supply deal

Canada's Nemaska Lithium has signed an initial agreement to supply lithium hydroxide to South Korean electronics manufacturer LG Chem.

Nemaska Lithium agreed to supply LG Chem with 7000 t/yr of lithium hydroxide for an initial period of five years from 2020. The lithium hydroxide will be produced at the company's Shawinigan facility in Quebec, Canada, using spodumene from Nemaska's Whabouchi mine.

The deal means that 90pc of the Shawinigan site's annual 33,000 t/yr output is now committed under term supply agreements.

LG Chem is a major producer of rechargeable lithium-ion batteries for use in electric vehicles and consumer electronics. It recently announced plans to expand its battery operations, building a plant in Poland that will be able to manufacture 100,000 batteries a year. The company has signed two joint venture agreements with China's Huayou Cobalt aimed at producing lithium-ion battery materials.

Chemicals companies have increased investment in battery development in recent years, seeking to capitalise on growing international demand for electric vehicles.