SEOUL, Sept. 17 (Korea Bizwire) – South Korean battery maker LG Energy Solution Ltd. said Friday it has signed a 350 billion won (US$297.5 million) deal to acquire a 4.8 percent stake in China’s Greatpower Nickel & Cobalt Materials Co. for a stable supply of battery materials.
The wholly owned subsidiary of LG Chem Ltd. said it also signed a six-year contract to purchase about 20,000 tons of nickel beginning in 2023, which is enough to supply about 370,000 electric vehicles.
Shanghai-based Greatpower has been building a plant in China for nickel sulphate, a major ingredient for lithium-ion batteries used in electric vehicles.
LG Energy said the latest deal is part of its efforts to secure the key battery materials as it plans to ramp up production of high-nickel batteries with longer range and higher energy density.
Last month, the firm signed a six-year deal with Australian Mines Ltd. to receive 71,000 tons of nickel and 7,000 tons of cobalt starting in late 2024.