LG Energy Solution has acquired a 4.8% stake in Greatpower Technology Co., Ltd - a Chinese manufacturer of nickel and cobalt, key components of EV batteries.
Thanks to this investment worth nearly $30 million, our group will purchase 20,000 tonnes of nickel over 6 years, starting in 2023. This amount is sufficient to power approximately 370 thousand electric cars with a range of at least 500 km on a single charge.
In addition, LGES Group in mid-August this year signed an agreement to purchase nickel and cobalt from Australian mining company Australian Mines. Under the agreement, LG Energy Solution will receive access to 71,000 tonnes of nickel and 7,000 tonnes of cobalt for 6 years, starting from the second half of 2024.
According to CRU estimates, global demand for nickel will increase to 3.32 million tonnes in 2024. In 2020, the value was 2.39 million tonnes. The conclusion of the agreement will allow the LG Energy Solution group to secure the supply of raw materials necessary for the production of lithium-ion batteries dedicated to the automotive industry.