According to Market Watch reports, South Korea’s LG Chem will spend 75 million US dollars (current approximately 514 million CNY) to acquire 5.7% of the US lithium mining company (Piedmont Lithium) to strengthen its position in the North American battery material supply chain.
LG Chem plans to buy about 1.1 million common shares of Piedmont on Feb. 23, according to a regulatory filing last week. The latter shares are listed on Nasdaq and the Australian Securities Exchange.
Under a separate offtake agreement between the two parties, Piedmont will supply 200,000 tonnes of spodumene concentrate to LG Chem over the next four years. This is a high-purity lithium ore.
Shin Hak-cheol, vice chairman and CEO of LG Chem, said: “This agreement enables LG Chem to source raw materials in the United States, its major market, and provide North American customers with products that meet IRA standards, thereby providing them with differentiated value.”
In addition, LG Chem plans to invest $3 billion to build a factory in Clarksville, Tennessee, USA, to supply battery materials for electric vehicles. LG Chem is the parent company of South Korean EV battery maker LG Energy Solutions Co., Ltd.
