A new step in the field of innovation and technology was taken by SQM and LG Energy Solution (LGES), leading companies in the production of lithium and batteries respectively, after signing a memorandum of understanding (MOU) to strengthen their business relations, since through which they undertake to study and develop joint investment projects at different stages of the value chain of the electromobility industry and thus contribute decisively to a more sustainable world. This agreement complements the lithium supply agreement already in force between both parties.
Potential joint investment projects include the production of cathodes and lithium hydroxide, as well as recycling projects in strategic locations, which will be studied in greater detail by SQM and LGES. Among these, the agreement to discuss the construction of a cathode material production plant in Chile.
In this regard, the General Manager of SQM, Ricardo Ramos, stated that “this agreement consolidates our commitment to the development of world-standard lithium products, with high added value and in line with the sustainability of our operation and respect for our environment. We are proud that a technological company of the prestige and relevance of LGES trusts us to innovate in Chile and thus continue contributing to the progress of our country”.
LG is today a world leader in battery production with 30 years of experience in advanced battery technology. In response to the MOU, Myung Hwan Kim, the company's CPO, stated that:
“SQM is a valuable business partner for LG Energy Solution. By joining forces, we look forward to further extending our long-standing collaboration that will keep us in a leadership position in the dynamic sector of secondary batteries, as well as in sustainable growth.”
Lithium carbonate and lithium hydroxide are an essential input in the production of the cathode material contained in the batteries used in electric cars. SQM manufactures both products entirely in Chile, starting with the extraction and concentration of brines high in lithium content in the Salar de Atacama, which are then transported to its facilities located on the outskirts of the city of Antofagasta, where it is located. the largest lithium carbonate and lithium hydroxide production plant in the world, where they are processed and refined to the quality standards required by the industry. SQM's production process is characterized by having one of the lowest carbon, water and energy footprints in the lithium industry.