The inflation reduction act (IRA) only subsidizes electric vehicles using batteries, which are assembled in North America and contain more than a certain percentage of core minerals extracted in the region.
"As we have recently announced our mid-to-long-term strategy to focus on North America, the fastest growing EV market, these partnerships serve as a crucial step towards securing a stable key raw material supply chain in the region," LGES CEO Kwon Young-soo said in a statement on September 23 after signing agreements with Canadian firms -- Electra, Avalon and Snowlake.
LGES will receive 7,000 tons of cobalt sulfate from Electra between 2023 and 2025. Avalon will supply some 50,000 tons of lithium hydroxide produced by Avalon for five years starting in 2025, and about 200,000 tons of lithium hydroxide, a key material for high-capacity electric vehicle batteries, will be supplied by Snowlake for 10 years.
LGES is expanding its strategic partnership with battery material companies in North America to build supply chains that meet IRA incentive conditions. "We will try hard to support cooperation between the two countries, including expanding investment to build a key mineral supply chain," said Trade, Industry and Energy Minister Lee Chang-yang.
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