LG Chemical invests US $7500 in Lithium Mining Company to stabilize the supply of battery materials

CTOnews.com, February 21, according to Market Watch, South Korea's LG Chemical (LG Chem) will pay $75 million (CTOnews.com note: about 514 million yuan) to acquire a 5.7% stake in American lithium mining company (Piedmont Lithium) to strengthen its position in the battery material supply chain in North America.

LG Chemical plans to buy about 1.1 million shares of Piedmont common stock on February 23, according to a regulatory filing last week. The latter shares are listed on the Nasdaq and Australian stock exchanges.

Under a separate off-take agreement, Piedmont will supply 200000 tons of spodumene concentrate to LG Chemical over the next four years. This is a kind of high purity lithium ore.

Shin Hak-cheol, vice chairman and chief executive of LG Chemical, said: "this agreement enables LG Chemical to acquire raw materials in the United States, the main market, to provide North American customers with products that meet IRA standards, thereby providing them with differentiated value."

In addition, LG Chemical plans to invest $3 billion to build a plant in Clarksville, Tennessee, to supply battery materials for electric vehicles. LG Chemical is the parent company of LG Energy Solutions Co., Ltd., a Korean electric vehicle battery manufacturer.