Asian Tech Press (Dec 15) -- Electric vehicle battery maker LG Energy Solution and its parent company LG Chem are joining forces to invest in Li-Cycle, a lithium-ion battery recycling company.

LG Chem and LG Energy Solution will make a strategic investment of $50 million in Li-Cycle, with each company contributing $25 million to acquire Li-Cycle's common stock.

In addition to the strategic investment, the three companies have also reached a cooperation agreement on the business side. Under the agreement, LG Energy Solution will supply Li-Cycle with waste batteries generated during production and recycled lithium-ion batteries. In contrast, Li-Cycle will supply 20,000 tons of nickel to LG Energy Solution and LG Chem over a 10-year period, starting in 2023.

LG Energy Solution said on its official website that the 20,000 tons of nickel supplied to them by Li-Cycle over ten years will produce lithium-ion batteries that can be assembled into about 300,000 high-performance electric vehicles.

Li-Cycle, founded in 2016, is a manufacturer that specializes in recovering key lithium-ion battery raw materials such as nickel and cobalt from discarded batteries.