[Edaily Reporter JAEMIN SONG ] LG Energy Solution has secured lithium concentrate capable of producing batteries for approximately 700,000 electric vehicles in Canada. The company’s strategy is to establish a North American supply chain—from raw materials to battery production—to respond to shifting demand for electric vehicles and energy storage systems (ESS).

LG Energy Solution announced on the 8th that it has signed a long-term supply contract for lithium concentrate with Elebra Lithium, a North American lithium producer.

Under the agreement, LG Energy Solution will receive a total of 240,000 metric tons of lithium concentrate over four years, starting at the end of this year. This amounts to approximately 30,000 metric tons of lithium hydroxide, enough to produce batteries for about 700,000 high-performance electric vehicles.

The lithium concentrate is produced at a North American lithium mine operated by Elebra Lithium in the Canadian province of Quebec. Lithium concentrate is a raw material obtained by processing and concentrating lithium ore; it is refined into lithium carbonate or lithium hydroxide. Lithium carbonate is primarily used in lithium iron phosphate (LFP) and ternary batteries, while lithium hydroxide is mainly used in high-performance, high-nickel ternary batteries.

Through this agreement, LG Energy Solution has secured the starting point of its value chain in North America—extending from the raw material (lithium concentrate) to materials such as lithium carbonate, lithium hydroxide, and cathode materials, and ultimately to battery production. By securing raw materials at the pre-processing stage, the company expects to be able to respond flexibly to fluctuations in demand for lithium carbonate and lithium hydroxide, which vary depending on market conditions for electric vehicles and energy storage systems (ESS).

The company plans to link the secured raw materials with its battery production hubs in Canada and the United States. LG Energy Solution currently operates five ESS production hubs in North America, including three standalone plants—the Lansing and Holland plants in Michigan and the NextStar Energy plant in Ontario, Canada—as well as two joint-venture plants with Honda and GM.

With demand for ESS in North America growing rapidly due to the expansion of artificial intelligence (AI) data centers and the widespread adoption of renewable energy, the company plans to expand its local production capacity for LFP batteries used in ESS to over 50 gigawatt-hours (GWh) by the end of this year. It is also broadening its business scope—from battery cell supply to system installation—through Vertec, its North American ESS system integration subsidiary.

In particular, NextStar Energy—Canada’s first large-scale battery plant—began mass production of ESS batteries last November. LG Energy Solution plans to use Canadian-sourced raw materials at its Canadian and U.S. production sites to enhance the stability and integrity of its North American supply chain.

Lee Kang-yeol, Executive Vice President and Head of the Procurement Center at LG Energy Solution, said, “Based on a stable supply of lithium concentrate, we will enhance the stability and flexibility of our supply chain and respond more swiftly to customer demand.”