Last week brought some good news for the EV industry, as LG Energy Solution (LGES) and Snow Lake Lithium (a carbon-conscious mining company) announced an exciting partnership. Together, these companies plan to establish a domestic supply chain of lithium in North America, which could help several automakers qualify for US federal tax credits.
Snow Lake Resources Ltd is committed to operating a “fully renewable and sustainable lithium mine that can deliver a completely traceable, carbon neutral and zero-harm product to the electric vehicle and battery market in North America.” The company’s mining operation is expected to be operational by 2025, at which point it has committed to supplying LG with the precious Earth material essential to current EV battery chemistry. Based on early assessments of the lithium-rich land that Snow Lake has consolidated and surveyed, the company believes it will be able to provide enough lithium to power five million EVs on the continent alone.
The Memorandum of Understanding (MOU) was detailed in a press release shared earlier today, noting that both companies are excited to “explore the opportunity to create one of Canada’s first lithium hydroxide processing plants in CentrePort, Winnipeg, Manitoba.” The MOU states that Snow Lake Lithium will supply LGES with lithium over a 10-year period once production starts in 2025. According to the release, a scoping study, in partnership with Primero, is already underway to “identify the technologies, innovations and skills required to deliver a world-class lithium hydroxide plant within the Manitoba Province.”
Currently, LG Energy Solution’s primary focus is the development of lithium-ion batteries for EVs, as well as Mobility & IT applications, and Energy Storage Systems (ESS). Moreover, in collaboration with Hyundai Motor Group, LGES recently shared plans for a 45 GWh battery cell factory in Canada with Stellantis. With this in mind, a partnership between LGES and Snow Lake Lithium seemingly couldn’t come at a better time.
“Both Snow Lake Lithium and LG Energy Solution recognize the importance of local sourcing of critical raw materials, such as lithium, and that this is the logical step for battery and electric vehicle manufacturers,” shared Philip Gross, the CEO of Snow Lake Lithium. “Our all-electric lithium mine in Snow Lake Manitoba will power five million electric vehicles over the next 10 years, helping to secure the future of the North American automobile market.”