Australian Mines has inked an offtake agreement with LG Energy Solution for key EV battery ingredients sourced from its flagship Sconi Project in North Queensland, which is currently under development.
Under the agreement, Australian Mines will supply the battery manufacturer with 71,000 dry metric tonnes of nickel plus 7,000 dry metric tonnes of cobalt – in the form of a mixed hydroxide precipitate (MHP) – over the next 6 years starting from the end of 2024.
“The execution of the offtake agreement is a major milestone for Australian Mines,” the company said in a statement.
“The offtake quantities covered by the offtake agreement will account for 100% of the projected future production of Sconi creating a sound customer foundation to underpin its development.”
MHP is a nickel and cobalt-containing intermediate product produced at Sconi that can be used as a raw material input for lithium-ion battery production.
LG Energy Solution, a subsidiary of LG Chem, is the world’s largest producer of advanced batteries for the electric vehicle industry.
The company’s President and CEO, Jong-hyun Kim, said the six-year supply deal would translate to producing batteries that can power 1.3 million high-performance electric vehicles, with driving range surpassing 500 kilometers on a single charge.
“LGES will solidify its position as the world’s leading battery manufacturer through a steady supply of raw materials for EV batteries,” he concluded.