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LG Energy Solution's Ochang plant. / LG Energy Solution

LG Energy Solution has moved to strengthen its North American battery supply chain by securing 240,000 tons of lithium concentrate in Canada. The company plans to meet demand across the electric vehicle and energy storage system (ESS) markets by establishing an integrated regional supply chain linking raw material procurement to battery production in North America.

LG Energy Solution announced on the 8th that it signed a long-term supply agreement for lithium concentrate with North American lithium producer Elevra Lithium.

Under this contract, LG Energy Solution will receive a total of 240,000 tons of lithium concentrate over four years starting at the end of this year. That converts to approximately 30,000 tons of lithium hydroxide, enough to produce batteries for around 700,000 high-performance electric vehicles.

The lithium concentrate will be produced at the North American Lithium (NAL) mine operated by Elevra Lithium in Quebec, Canada.

Lithium concentrate is a raw material produced by processing and concentrating lithium ore, which undergoes refining to yield lithium carbonate and lithium hydroxide. Lithium carbonate is primarily used in lithium iron phosphate (LFP) and nickel-cobalt-manganese ternary batteries, while lithium hydroxide is mainly utilized in high-performance high-nickel ternary batteries.

Through this deal, LG Energy Solution secures the starting point of its North American supply chain, extending from raw materials to components and battery production. By directly procuring unrefined feedstock, the company expects to respond flexibly to shifting demand across the EV and ESS markets for supplies of both lithium carbonate and lithium hydroxide.

The acquired feedstock will be linked to North American battery production hubs. Recently, ESS demand in North America has surged due to the expansion of artificial intelligence data centers and wider renewable energy adoption.

LG Energy Solution operates three standalone production bases: facilities in Lansing and Holland, Michigan, in the U.S., and the NextStar Energy plant in Ontario, Canada. Combined with two joint-venture plants—the L-H Battery Company in Ohio with Honda and Ultium Cells in Tennessee with General Motors (GM)—it has secured five North American ESS manufacturing hubs.

Leveraging these facilities, the company plans to expand its North American production capacity for ESS-use LFP batteries to more than 50 GWh by the end of this year. It is also expanding its business portfolio from cell supply to end-to-end system integration through Vertech, its North American ESS system integration subsidiary.

The NextStar Energy plant in Windsor, Canada, is the country's first large-scale battery manufacturing facility, having begun mass production of ESS batteries in November last year. LG Energy Solution plans to raise the proportion of regional raw material sourcing across North America by connecting Canadian-sourced lithium concentrate to its production sites in Canada and the U.S.

Lucas Dow, CEO of Elevra Lithium, said, "This agreement marks an important milestone in advancing our growth strategy," adding, "We will pursue production expansion backed by our partnership with LG Energy Solution."

Lee Kang-yeol, Senior Vice President and Head of Procurement Center at LG Energy Solution, said, "This contract aims to reinforce our North American raw material supply chain and respond proactively to the regional battery market," adding, "Based on a stable supply of lithium concentrate, we will enhance supply chain reliability and flexibility to address customer demand promptly."

                                                                                                           Nam Hyun-soo