LGES and Compass partner for lithium supply

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LGES and Compass partner for lithium supply

South Korean battery maker LG Energy Solutions LGES said on Wednesday that it had entered a non-binding deal for battery-grade lithium supply with Compass Minerals while negotiations for a final agreement were ongoing.

The price of batteries, including lithium, cobalt and nickel, has rallied to multi-year highs due to red-hot demand for electric vehicles. EVs Compass is the first US-based lithium producer to partner with the battery manufacturer in North America to meet demand for EVs, according to LGES.

Starting in 2025, LG would receive 40 percent of the lithium carbonate and lithium hydroxide that Compass produces for seven years.

LGES, which supplies batteries to Tesla, said it was reevaluating a US $1.3 billion investment plan for an Arizona factory due to unprecedented economic conditions.

LGES has signed deals with Liontown Resources and Vulcan Energy Resources this year for battery minerals.