SQM and LG Energy Solution sign an agreement to promote the added value and the technology of lithium
SQM and LG Energy Solution (LGES), leading companies in the production of lithium and batteries respectively, have taken a step further in terms of innovation and technology after signing a memorandum of understanding to strengthen their business relations. Through the agreement, they commit to investigate and develop joint investment projects at different stages of the electro-mobility industry value chain and contribute decisively to a more sustainable world. This deal supplements the standing lithium supply agreement between the parties.
Cathode, lithium hydroxide production and recycling projects in strategic locations are some of the potential joint investment projects which will be investigated further by SQM and LGES. Among these, the agreement to discuss the construction of a cathode production facility in Chile stands out.
In this regard, SQM´s General Manager Ricardo Ramos stated that “this agreement solidifies our commitment with the development of lithium products of global standard, with high added value and in line with the sustainability of our operation and the respect for our environment. We are proud that a technological company with the prestige and importance of LGES trusts in us to innovate in Chile and continues contributing by doing so to the progress of our country”.
LGES is a global leading lithium-ion battery manufacturer with 30 years of experience in advanced battery technology. In response to the MOU, the company’s Chief Product Officer Myung Hwan Kim said,
“SQM is a valuable business partner for LG Energy Solution. By joining forces, we look forward to further augmenting our longstanding partnership which will keep us in a leading position in the fast-growing secondary battery industry as well as in sustainable growth.”
Lithium carbonate and lithium hydroxide are an essential input in the production of cathode material contained in batteries used by electric vehicles. SQM manufactures both products entirely in Chile starting with the extraction and concentration of brine with high content of lithium from the Salar de Atacama which is transported afterwards to their facilities on the outskirts of Antofagasta where the worlds biggest production plant of lithium carbonate and lithium hydroxide is located and where they are processed and refined to meet the quality standards demanded by the industry. The production process of SQM distinguishes itself by having one of the lowest carbon, water and energy footprints of the lithium industry.