Seoul:LG Energy Solution Ltd., South Korea's leading battery maker, announced it has signed a long-term agreement to secure lithium concentrate from an Australian company.

According to Yonhap News Agency, Elevra Lithium will supply LG Energy with 240,000 metric tons of lithium concentrate from its Canadian mine over a four-year period starting later this year. LG Energy anticipates this supply agreement will enhance its ability to address local customer needs while supporting the rapid expansion of the North American energy storage system (ESS) market.

Lee Kang-yeol, procurement center leader of LG Energy Solution, stated that this agreement is a significant step in strengthening their raw material supply chain in North America and supporting the region's fast-growing ESS market.

With the increasing demand for ESS batteries, LG Energy plans to achieve more than 50 gigawatt-hours (GWh) of lithium iron phosphate (LFP) cell production capacity in North America by December. This will be accomplished through capacity at three wholly owned plants, including LG Energy Solution Michigan-Lansing, LG Energy Solution Michigan-Holland, and NextStar Energy in Ontario, Canada, along with two joint venture facilities with Honda Motor Co. in Ohio and General Motors Co. in Tennessee.

Battery companies are intensifying efforts to secure more ESS battery deals to counterbalance the sluggish demand for EV batteries due to a prolonged downturn in the electric vehicle market. The U.S. ESS market is projected to grow fourfold by 2031, reaching 499 GWh in capacity, as reported by market research firm Wood Mackenzie.