U.S. : LG Chem Ltd. has just purchased a 5.7% stake in U.S. mining company Piedmont Lithium Inc., to the tune of $75 million USD. This move further strengthens LG Chem's presence in the North American battery-material supply chain. LG Chem plans to buy approximately 1.1 million of Piedmont's common shares on February 23rd.
Piedmont and LG Chem have reached an agreement for the supply of 200,000 tons of spodumene concentrate - a high-purity Lithium ore - over the next four years. Under this separate offtake deal, both sides benefit from tax credits and additional incentives granted to battery industries under the U.S. Inflation Reduction Act. Lithium is a key material in the making of batteries, so this agreement supports the continued development of these products.
"We welcome LG Chem as a shareholder in Piedmont and are excited to partner with them to supply North American Lithium that will meet the requirements of the IRA and support the development of the U.S. battery supply chain," Piedmont President and CEO Keith Phillips stated.
"This agreement allows LG Chem to provide differentiated values to North American customers with products that satisfy IRA standards by pre-emptively securing raw materials in the U.S., our key market," LG Chem Vice Chairman and CEO Shin Hak-cheol stated.
LG Chem has announced plans to build a $3 billion factory in Clarksville, Tennessee, which will supply battery materials for electric vehicles. The South Korea-based EV battery maker is LG Energy Solution Ltd., a subsidiary of the parent company, LG Chem.