Compass Minerals on Nov. 10 announced the signing of a binding, multiyear supply agreement to provide LG Energy Solution (LGES), a global manufacturer of lithium-ion batteries for electric vehicles and energy storage systems, with battery-grade lithium carbonate from its Ogden, Utah, solar evaporation lithium brine development. The agreement is the culmination of negotiations announced in June (GM July 1, p. 27).
Per the terms of the agreement, Compass would deliver up to 40% of its planned, phase one battery-grade lithium carbonate production to LGES for an initial six-year term from supply commencement. Purchase pricing will be based on market index under the agreement.
As previously announced, the company expects an annual commercial production capacity of approximately 35,000 mt of lithium carbonate equivalent (LCE) once fully operational, with an initial phase one capacity of approximately 11,000 mt battery-grade lithium carbonate coming online by 2025.
Compass is pursuing the sustainable development of an approximately 2.4 million mt LCE resource on the Great Salt Lake, readily available for extraction through existing permits, water rights, and operational infrastructure at the company’s Ogden facility, the largest of its kind in the Western Hemisphere.