LG Energy to procure graphite from Australia
Move made to reduce reliance on China
LG Energy Solution said on Wednesday that it will be procuring graphite from Australian firm Syrah Resources Limited.
The South Korean battery maker said the move was done to reduce the reliance on China for the material ahead of the US Inflation Reduction Act coming into effect.
LG Energy Solution will be procuring 2,000 tonnes of natural graphite that will begin supply in 2025 from the Australian firm.
Syrah Resources Limited has a graphite mine in Mozambique and will begin operating a production factory in Louisiana in the US next year.
This means the graphite that is produced in the US will receive local subsidies for electric vehicles.
LG Energy Solution had previously signed a similar material supply contracts with various mining companies such as Electra, Avalon and Snowlake.