Avalon and LG Energy sign MOU to boost Ont.’s lithium battery supply
by CM Staff
The MOU was signed during the visit of South Korea's President, Yoon Suk Yeol to Canada, at a ceremony supported by the Korea Mine Rehabilitation and Mineral Resources Corporation.
TORONTO — Avalon Advanced Materials Inc. has signed a non-binding memorandum of understanding with LG Energy Solution to supply LGES with a battery-grade lithium hydroxide starting in 2025.
Avalon plans to establish a regional lithium battery materials supply chain in Ontario to serve the needs of future electric vehicle and lithium-ion battery manufacturers in southern Ontario and elsewhere.
The MOU was signed during the visit of South Korea’s President, Yoon Suk Yeol to Canada, at a ceremony supported by the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), Natural Resources Canada (NRCAN) and other partners.
LGES is a global manufacturer of lithium-ion batteries for electric vehicles and energy storage systems. Avalon is accelerating its plans for establishing a lithium battery materials processing facility in Thunder Bay, Ont.
Under the terms of the MOU, Avalon would commit an initial five years to provide LGES with at least 50 per cent of its planned initial lithium hydroxide production from its Thunder Bay facility, with the potential to increase production as demand grows. LGES says Avalon’s planned lithium processing facility represents a bridge to connect downstream users with the lithium battery material required to meet production targets.
“As we have recently announced our mid-to long-term strategy to focus on North America, the fastest growing EV market, this partnership serves as a crucial step towards securing a stable key raw material supply chain in the region,” said Youngsoo Kwon, CEO of LG Energy Solution in a statement.