LG Energy Solution has entered into a major lithium supply agreement with the Chilean chemical company SQM. The agreement, which is the largest lithium supply contract in history, guarantees LG Energy Solution a supply of 100,000 tons of lithium over the next seven years. This is a significant increase from an earlier contract between the two companies, which provided for the supply of 36,000 tons of lithium. The new agreement will enable LG Energy Solution to produce batteries for more than 2 million electric vehicles (EVs).

“This contract allows us not only to bolster the stability of our lithium supply, a crucial component for batteries but also to enhance our ability to actively respond to the U.S. Inflation Reduction Act (IRA) by diversifying our supply chain,” said Kim Myung-hwan, LG Energy Solution’s chief procurement officer. “Leveraging our exceptional raw material supply stability and unrivaled product competitiveness, we are committed to delivering unparalleled value to our global customers.”