Canada’s Elevra Lithium will supply the South Korean battery maker with 240,000 tonnes of lithium concentrate. Deliveries are due to begin at the end of 2026 and continue for four years.
LG Energy Solution said the material would come from Elevra’s operating North American Lithium project in Quebec. The company expects the agreement to strengthen its North American supply chain and support the growing energy storage systems market.
By December, LG Energy plans to have more than 50 gigawatt-hours of lithium iron phosphate battery cell production capacity in North America. The plan includes three wholly owned plants in Michigan and Ontario and two joint ventures with Honda and General Motors in the United States.
Battery makers are seeking energy storage system contracts as demand for electric vehicle batteries remains weak amid a prolonged market downturn. Wood Mackenzie forecasts that U.S. ESS capacity will quadruple by 2031 to 499 GWh.