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Compass Minerals Signs Binding Multiyear Agreement to Supply LG Energy Solution with Battery-Grade Lithium Carbonate

Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today announced the signing of a binding, multiyear supply agreement to provide LG Energy Solution (LGES; KRX: 373220), a leading global manufacturer of lithium-ion batteries for electric vehicles and energy storage systems, with battery-grade lithium carbonate from its Ogden, Utah solar evaporation lithium brine development.

Per the terms of the agreement, Compass Minerals would deliver up to 40% of its planned, phase-one battery-grade lithium carbonate production to LGES for an initial 6-year term from supply commencement. Purchase pricing will be based on market index under the agreement.

As previously announced, the company expects an annual commercial production capacity of approximately 35 kMT lithium carbonate equivalent (LCE) once fully operational, with an initial phase-one capacity of approximately 11 kMT battery-grade lithium carbonate coming online by 2025.

“This binding supply agreement represents an important milestone for our company’s entry into a rapidly growing domestic lithium market,” said Chris Yandell, head of lithium for Compass Minerals. “We are excited to partner with a proven manufacturing leader like LGES to help enable the buildout of a robust and secure advanced battery supply chain.”

Compass Minerals is pursuing the sustainable development of an approximately 2.4 mMT LCE resource on the Great Salt Lake, readily available for extraction through existing permits, water rights and operational infrastructure at the company’s Ogden facility, the largest of its kind in the Western Hemisphere.

“This offtake agreement with Compass Minerals culminates our continued endeavors to establish a stable supply for critical minerals in North America, as we adapt to recent regulatory changes and intensifying competition over key battery raw materials,” said Dongsoo Kim, Senior Vice President of the Procurement Center at LG Energy Solution.

The signed supply agreement represents the culmination of negotiations between Compass Minerals and LGES following the previously announced signing of a non-binding Memorandum of Understanding (MOU) between the two companies in June of 2022. The supply agreement is subject to the successful start of commercial-scale, lithium carbonate production at Compass Minerals’ Ogden facility and full product qualification. The companies also expect to negotiate in good faith on a portion of Compass Minerals’ anticipated phase-two production of battery-grade lithium hydroxide.

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Compass Minerals Signs Binding Multiyear Agreement to Supply LG Energy Solution with Battery-Grade Lithium Carbonate Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today announced the signing of a binding, multiyear supply agreement to provide LG Energy Solution (LGES; KRX: 373220), a leading global manufacturer of lithium-ion …

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