SQM and LG Energy Solution signed an agreement to explore new projects together, especially in key areas of the lithium industry and electromobility.
SQM and LG sign agreement for new lithium projects
LG Energy Solution (LGES) and SQM, leading companies in the production of lithium and batteries, signed a memorandum of understanding (MOU) to strengthen their business relationship.
Through this agreement, both companies commit to studying and developing joint investment projects at different stages of the electromobility value chain, thus contributing to a more sustainable world.
This agreement complements the existing lithium supply agreement between both parties.
Joint investment projects under analysis
Potential projects include the production of cathodes, lithium hydroxide, and various recycling initiatives in strategic locations. All of these will be studied in greater detail by SQM and LGES.
Among them, the agreement to evaluate the construction of a cathode material production plant in Chile stands out.
SQM's commitment to sustainability and added value
SQM's General Manager, Ricardo Ramos, stated: “This agreement reinforces our commitment to developing world-class lithium products with high added value, in line with the sustainability of our operations and respect for our environment. We are proud that a technology company of LGES's prestige and relevance trusts us to innovate in Chile and thus continue contributing to the progress of our country.”
LG Energy Solution's vision
LGES, a world leader in battery production with 30 years of experience in advanced technology, valued the MDE's signature.
Regarding this, Myung Hwan Kim, the company's CPO, stated:
“SQM is a valued business partner for LG Energy Solutions. By joining forces, we look forward to further extending our long-standing collaboration, which will keep us in a leading position in the dynamic secondary battery sector and ensure sustainable growth.”
The role of lithium in the battery value chain
Lithium carbonate and lithium hydroxide are essential inputs for producing the cathode material used in electric vehicle batteries. SQM manufactures both products entirely in Chile.
The process begins with the extraction and concentration of lithium-rich brines in the Atacama Salt Flat. These brines are then transported to facilities located outside Antofagasta, home to the world's largest lithium carbonate and hydroxide production plant. There, they are processed and refined to meet the industry's demanding quality standards.
SQM's production process is characterized by having one of the lowest carbon, water and energy footprints in the lithium industry.
More Information
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