SEOUL, South Korea, Oct. 20, 2022 /PRNewswire/ -- LG Energy Solution (LGES; KRX: 373220) announced it signed a non-binding Memorandum of Understanding (MoU) on October 19 with Syrah Resources Limited (Syrah; ASX:SYR) on partnering to evaluate natural graphite anode material.
Under the terms of the MoU, LGES and Syrah will test and verify the natural graphite from Syrah's Vidalia production facility in Louisiana, U.S., which is scheduled to start production in 2023. Through the testing and verification procedures, the companies will ensure that the products satisfy LGES's technical requirements for natural graphite, and commit efforts to determine the final product specifications by the end of 2023.
Based on the results of the evaluation, LGES and Syrah will also use commercially reasonable efforts to sign a binding offtake agreement by the end of 2022. The annual procurement targets for natural graphite will begin at 2,000 metric tons in 2025 and continuously increase in the upcoming years.
"Our partnership with Syrah demonstrates our devotion to diversifying the critical minerals portfolio by directly procuring from local and regional suppliers in North America, more so as natural graphite is one of the battery materials with the least diverse supply chain," said Youngsoo Kwon, CEO of LG Energy Solution. "As we aim to not only expand our customer base but also increase our production capacity in North America, securing a competitive local supply chain for key critical minerals will play a crucial role in ensuring a stable delivery of the world-best quality products to our customers."
"Syrah is pleased to sign an MoU with LG Energy Solution as a key step toward the supply of anode materials and supportive of the further development of our Vidalia production facility," said Shaun Verner, Managing Director and CEO of Syrah. "LG Energy Solution is a tier 1 global manufacturer of lithium-ion batteries and their rapidly expanding manufacturing position in the USA is aligned with Syrah's growth plans."
The non-binding MoU with Syrah marks the sixth partnership agreement LGES has signed under its mission to secure key raw materials for EV battery production in North America. Prior to this MoU, LGES has signed non-binding MoUs with Compass Minerals on lithium carbonate and lithium hydroxide, and with Avalon Advanced Materials and Snow Lake Resources on lithium hydroxide. LGES has also signed binding term sheets with Sigma Lithium (battery-grade lithium) and Electra Battery Materials Corporation (cobalt sulfate).
About LG Energy Solution
LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 25,000 patents. Its robust global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V., Hyundai Motor Group, and Honda Motor Co., Ltd. At the forefront of green business and sustainability, LG Energy Solution aims to achieve carbon neutral operations by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution's ideas and innovations, visit https://news.lgensol.co.
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