Vulcan Energy inks binding lithium hydroxide supply deal with LG Energy

Jan 31 (Reuters) - Lithium miner Vulcan Energy Resources (VUL.AX) said on Monday it finalised a binding agreement to sell lithium hydroxide to the battery unit of South Korea's LG Chem (051910.KS) from its project in Germany.

The agreement will see LG Energy Solution buy up to 50,000 metric tonnes of battery-grade lithium chemicals over five years starting in 2025 with an option to extend the agreement for a further five years.

The Australia-listed firm said pricing will be based on lithium-hydroxide market prices.

LG Energy, which produces lithium-ion batteries in Poland, the United States, China and South Korea, is expanding capacity to meet the growing demand for electric vehicles.

Vulcan, which aims to produce lithium hydroxide from Germany's Upper Rhine Valley, has already inked supply deals with Volkswagen (VOWG_p.DE)and Stellantis (STLA.MI) among others.

Vulcan's process for extracting lithium will produce renewable power and emit no carbon dioxide, it said, unlike Australia's hard rock lithium mining. read more

Reporting by Harish Sridharan in Bengaluru; Editing by Sandra Maler

Our Standards: The Thomson Reuters Trust Principles.