LG Energy Solution-battery material

LG Energy Solution-battery material

LG Energy Solution to develop battery anode material with Australian company

SEOUL, June 7 (Yonhap) -- LG Energy Solution Ltd. said Wednesday it has clinched an agreement with an Australian battery materials company to develop artificial graphite, a key component for secondary batteries, accelerating efforts to bolster the sourcing of core battery materials.

The joint development agreement was signed with Novonix Ltd., a Brisbane-based tech company, under which LGES will be supplied with 50,000 tons of artificial graphite over 10 years upon successful development of the product, the South Korean battery maker said in a release.

In a separate deal, LGES will buy US$30 million worth of unsecured convertible notes to be issued by Novonix, which will allow the battery maker to own shares in the Australian partner.

Anodes are one of the key components for electric vehicle batteries that determine the battery life span, charging speed and energy density. Graphite is the most widely used feedstock for commercial lithium-ion batteries.

The partnership will help LGES expand its battery suppliers and solidify the presence in North America in compliance with the U.S. Inflation Reduction Act that gives subsidies for EVs made with components sourced from the region.

Novonix has operating facilities in Tennessee.

LGES, the world's second-largest battery maker, has two standalone factories and five joint venture plants under operation or construction in the United States.

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