According to media reports, Australia-based lithium miner Vulcan Energy Resources has signed a binding lithium hydroxide supply agreement with LG Energy Solution, a subsidiary of South Korean power battery company LG Chem.

Under the agreement, Vulcan Energy Resources will supply battery-grade lithium hydroxide to LG Energy Solution. LG Energy Solution will purchase 5,000 metric tons of battery-grade lithium hydroxide in the first year of the agreement and 10,000 tons per year thereafter. It will pay market prices for these raw materials used to manufacture battery cathodes.

Vulcan Energy Resources said its deal with LG Energy Solutions is expected to be finalized by the end of November this year. The agreement has an initial term of five years but could be extended for another five years.
LG Energy Solutions is a company spun off from LG Chem that specializes in the battery business. LG Chem holds 100% of the equity in LG Energy Solutions.