Piedmont will provide priority negotiation rights to LG Chem. Credit: rbadibanga from Pixabay.
Chemicals company LG Chem has signed a $75m deal to purchase a 5.7% stake in Piedmont Lithium and also reached a spodumene concentrate offtake agreement with the US-based lithium developer.
Under the agreed terms, the chemicals firm will subscribe for nearly 1.09 million newly issued shares in Piedmont, at $68.40 apiece.
LG Chem also agreed to the offtake of 200,000mt (metric tonnes) of spodumene concentrate from Piedmont’s jointly owned North American lithium project in Québec, Canada.
The offtake agreement has a four-year period, which can be extended mutually for any number of years.
Piedmont will annually deliver 50,000mt of spodumene concentrate to LG Chem.
Shipments are expected to commence in the third quarter of this year.
Piedmont president and CEO Keith Phillips said: “We welcome LG Chem as a shareholder in Piedmont and are excited to partner with them to supply North American lithium that will meet the requirements of the IRA and support the development of the US battery supply chain.
“LG Chem is a global leader with a commitment to US EV battery manufacturing and plans to build one of the world’s largest cathode plants in Clarksville, Tennessee.”
Furthermore, Piedmont will provide priority negotiation rights to LG Chem for 10,000mt of lithium hydroxide that it produces annually at either of its proposed facilities in Tennessee or North Carolina.
LG Chem vice-chairman and CEO Hak-Cheol Shin said: “This agreement allows LG Chem to provide differentiated values to North American customers with products that satisfy IRA standards by preemptively securing raw materials in the US, our key market.
“As we work to build various partnerships, including joint metal investments with automotive OEMs and battery makers, we’re pleased that our partnership with and commitment of funds to Piedmont will help support its development of US lithium projects.”
This article was published by: Archana Rani
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