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Sigma Lithium, LG Energy strike supply deal over lithium for EV battery

Canada's Sigma Lithium Corp said on Tuesday it had entered into a deal with LG Energy Solution for the supply of battery-grade lithium to the South Korean company, at a time when demand for the white metal used in electric-vehicle batteries has soared.

Automakers are boosting their spending on electric and autonomous vehicles amid mounting pressure from governments and investors to reduce carbon emissions.

The six-year LG Energy offtake for battery grade sustainable lithium concentrate scales from 60,000 tons per year in 2023 to 100,000 tons per year from 2024 to 2027, Sigma said in a statement.

The Sigma-LG deal is for concentrate lithium, rather than hydroxide or carbonate, where it would have to be further chemically processed to turn into cathode materials.

General Motors Co and joint-venture partner LG Energy Solution said in April they would build a second U.S. battery cell manufacturing plant, revealing their plans for a US$2.3 billion factory in Spring Hill, Tennessee.

Earlier this year, LG Energy said it planned to invest more than US$4.5 billion in its U.S. battery production business over the next four years.

Source: Reuters

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