SQM and LG Energy Solution announce new long-term agreement to supply refined lithium products
Santiago, Chile. July 5, 2023- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) and LG Energy Solution (LGES) (KRX: 373220) announced the successful negotiation of a new long-term purchase agreement, which replaces the previous one in force, to supply over 100,000 metric tons of battery grade lithium carbonate and lithium hydroxide during 2023-2029 period (The “Purchase Agreement”).
LG Energy Solutions confidence in SQM is based on the Company’s extensive and successful track record in the recent years of effectively tripling its production of refined lithium chemicals with the industry’s smallest environmental footprint. This has allowed SQM to respond efficiently and timely to the demands of a competitive and expanding market.
Carios Diaz, Executive Vice President of Lithium, commented: “We are grateful for the confidence placed by LGES in the SQM’s capacity to supply refined lithium products for their electric vehicle Cells. The new Purchase Agreement consolidates the commercial relationship built with our Korean partners over the years and will allow both companies to continue contributing to the global decarbonization”.
“Through this agreement, we have not only enhanced the supply stabilty of lithium, a critical mineral in batteries, but also strengthened our ability to actively respond to the IRA (Infation Reduction Act) by diversifying our supply chains” said Myung-hwan Kim, Chief Production & Procurement Officer of LG Energy Solution. “We will continue to provide the world’s best customer value based on the reliable supply of differentiated raw materials and our univaled product competitveness”.
