LG Energy Solution Secures Four-Year Canadian Lithium Supply Deal

LG Energy Solution has signed a four-year agreement with Canada's Elevra Lithium to secure a steady supply of lithium concentrate, reinforcing the South Korean battery maker's raw-material network as it expands energy-storage production in North America.

Under the agreement, Elevra Lithium will supply 240,000 metric tons of lithium concentrate beginning later this year. LG Energy Solution said the deal will strengthen its ability to respond to local customers while supporting rapid growth in the North American energy storage system market.

Lithium concentrate is a key upstream material used to produce battery-grade lithium compounds. Securing it through a multiyear contract gives LG Energy Solution greater visibility over a critical part of its supply chain at a time when battery manufacturers are seeking stable regional sources of raw materials.

Lee Kang-yeol, head of LG Energy Solution's procurement center, described the agreement as another step in strengthening the company's North American raw-material supply chain and supporting the region's expanding energy-storage market.

The company plans to have more than 50 gigawatt-hours of lithium iron phosphate cell production capacity in North America by December. Its planned footprint includes three wholly owned plants: the Michigan-Lansing and Michigan-Holland facilities in the United States and NextStar Energy in Ontario, Canada. It also includes joint-venture facilities with Honda Motor in Ohio and General Motors in Tennessee.

The supply agreement comes as battery makers place greater emphasis on stationary storage to balance weaker demand from the electric-vehicle sector. Energy storage systems can hold electricity generated by renewable sources and release it when needed, making batteries increasingly important to power grids as solar and wind capacity grows.

LG Energy Solution's focus on lithium iron phosphate chemistry also reflects the needs of the storage market, where cost, safety and long cycle life are major considerations. The Canadian agreement links raw-material procurement more closely with the company's growing regional manufacturing base.

Market researcher Wood Mackenzie expects the US energy-storage market to expand fourfold by 2031, reaching 499 gigawatt-hours of capacity. That projected growth is encouraging battery producers to compete for long-term supply arrangements and local production capacity even as the electric-vehicle market remains sluggish.

For LG Energy Solution, the Elevra contract offers both supply-chain support and a strategic bridge between Canadian resources and its network of factories serving North American customers.