SQM signs lithium supply agreement with LG Energy Solutions

Chilean lithium producer Sociedad Quimica y Minera (SQM) has signed a long-term supply agreement for high quality lithium cathode material with LG Energy Solutions, it said on Tuesday December 22.

Under this agreement, SQM will supply battery-grade lithium carbonate and lithium hydroxide to South Korean battery maker LG Energy Solutions for cathode manufacturing from 2021 to 2029 with a total volume of around 55,000 tonnes of lithium carbonate equivalent (LCE).

SQM said the signing of this large-scale long-term supply agreement is an important milestone for the company not only because it is part of its growth strategy to increase market share in the lithium sector, but also because it solidifies its prominent position as a high-quality lithium supplier for the production of batteries of electric vehicles (EVs).

The companies did not disclose prices for the lithium compounds or other details this time.

LG Energy Solution is the wholly-owned subsidiary of LG Chem, a South Korean battery maker for EVs, that was set up on December 1, 2020, to develop the group’s battery-related business.

“This seems a constructive development as it enables LG Energy Solutions to secure supply from a low-cost producer while at the same time it provides SQM with a secured buyer that will help SQM plan and invest in future capacity. We expect to see more deals like this as the downstream part of the supply chain will likely want to secure supply given the billions they are investing in EV production capacity,” head of base metals and battery research at Fastmarkets William Adams said.

The cif China, Japan and Korea battery-grade lithium market has been stable for several months since it moved down to its current levels in mid-September.

Fastmarkets assessed the lithium carbonate, 99.5% Li2CO3 min, battery grade, spot price cif China, Japan and Korea at $6-7.50 per kg on Thursday December 17. The price fell from $6.50-8 per kg on September 17.

The lithium hydroxide monohydrate, 56.5% LiOH.H2O min, battery grade, spot price, cif China, Japan and Korea has maintained $8.50-9.50 per kg since September 17, when it fell from $8.80-10 per kg.

But some market participants have increased their offer prices for lithium carbonate, supported by rising China’s prices on the back of supply restraints and a pick-up in downstream demand.

What to read next
The publication of the affected prices was delayed for 50 minutes. The following indices were published late: MB-MNO-0001 Manganese ore high grade index, cif Tianjin, $ per dmtu MB-MNO-0002 Manganese ore semi carbonate index, 36.5% Mn, fob Port Elizabeth, $/dmtu MB-MNO-0003 Manganese ore semi carbonate index, 36.5% Mn, cif Tianjin, $/dmtu These prices are a part of the […]
The global copper market has finally received the widely anticipated news that imports to the US will be tariffed from August 1. The finer details of the tariffs, including their scope, and whether key copper-exporting nations like Chile, Canada and Peru will be exempt, remain unclear.
LME copper prices took a significant hit following US President Donald Trump's announcement of a potential 50% tariff on copper imports. The uncertainty surrounding the timeline and implementation of the tariff has left market participants hesitant, with analysts noting its immediate impact on price momentum and trading activity.
The purpose of this review is to ensure that the index continues to accurately reflect prevailing market conditions. We welcome feedback from industry participants on potential amendments to the base specification. This consultation, which is open until August 9, 2025 seeks to ensure that our methodologies continue to reflect the physical market under indexation, in […]
Key talking points from the 75th anniversary event of European steel distributors’ association Eurometal, held July 2-3 in Luxembourg and attended by Fastmarkets.
Fastmarkets has launched MB-AL-0424 Aluminium P1020A premium, fob Indonesia, $/tonne on July 9 due to an expected increase in Indonesia-origin aluminium exports. MB-AL-0424 Aluminium P1020A premium, fob Indonesia, $/tonneQuality: P1020A or 99.7 % Minimum Al purity (Si 0.10% max, Fe 0.20% max) in line with LME specifications. Ingot, T-bar, sowQuantity: Min 500 tonnesLocation: FOB IndonesiaTiming: […]