LG Energy Solution has put in 35 billion won into China’s Greatpower Technology for a 4.8% stake.
The South Korean battery maker said on Friday that it will be procuring 20,000 metric tonnes of nickel from the Chinese company from 2023 to 2028.
The amount if enough for batteries that can be used in around 370,000 units of electric vehicles, LG Energy Solution said.
The South Korean company has been focusing on securing supply lines for raw materials used in battery production.
Last month, it signed a deal with Australian Mines to procure 71,000 metric tonnes of nickel and 7,000 metric tonnes of cobalt.
In June, it acquired a 7% stake in Australia’s Queensland Pacific Metals and will start receiving a supply of 70,000 metric tonnes of nickel and 7,000 metric tonnes of cobalt next year.
In December, LG Energy Solution bought shares in Solus Advanced Materials’ European subsidiary for 57.5 billion won to start receiving copper foils in May. Copper foils are used in battery anodes.
Nickel and cobalt are used in battery cathodes, the most expensive component of a battery.
High amounts of nickel for the cathodes increase the energy density of batteries.
LG Energy Solution is currently manufacturing NCMA batteries, that have more nickel in them but less cobalt, which is an expensive raw material.
