LG Energy Solution secures 240,000 tons of Canadian lithium from Elevra

LG Energy Solution signed a binding four-year offtake agreement on Oct. 8, 2026, to purchase 240,000 dry metric tons of Canadian spodumene concentrate from Elevra Lithium.

The supply will yield roughly 30,000 metric tons of battery-grade lithium hydroxide. That volume provides enough critical cathode material to power approximately 700,000 high-performance electric vehicles.

Elevra will extract the lithium-bearing mineral from its operational North American Lithium open-pit mine in Quebec. The site is currently the sole active commercial producer of hard-rock spodumene in North America.

Shipments will begin late in 2026 with an initial batch of 30,000 dry metric tons. Annual volume will rise to 60,000 tons in both 2027 and 2028 before reaching 90,000 tons in 2029.

The companies did not disclose the total dollar value of the contract in their regulatory filings. Offtake pricing will track prevailing market spot indexes at the time of delivery rather than fixed figures.

LG Energy Solution operates five standalone and joint-venture battery manufacturing hubs across North America. Sourcing Canadian spodumene shields those plants from supply-chain bottlenecks and raw material volatility.

Among those operating sites is the NextStar Energy battery plant in Windsor, Canada, a 5-billion-Canadian-dollar joint venture with Stellantis. The complex began cell assembly in 2025 and requires local raw materials.

The South Korean battery maker also operates manufacturing sites in Holland, Michigan, alongside joint facilities with General Motors in Tennessee and Michigan. It is completing an automotive battery plant with Honda in Ohio.

LG Energy Solution plans to expand its North American energy storage system manufacturing capacity to 50 gigawatt-hours by late 2026. Those stationary storage systems rely primarily on lithium iron phosphate cell chemistry.

Spodumene concentrate can be processed into lithium carbonate for stationary storage packs or lithium hydroxide for high-nickel vehicle batteries. Buying unrefined concentrate gives LG Energy Solution operational flexibility across both product lines.

The procurement strategy aligns with the United States Inflation Reduction Act, which mandates local sourcing of critical minerals. Electric vehicles must use battery minerals extracted or processed in North America to earn consumer tax credits.

The rules disqualify vehicles containing battery minerals processed by designated foreign entities of concern. Sourcing Canadian rock helps LG Energy Solution insulate its automotive clients from future disqualifications under those United States regulations.

China currently refines more than 65% of the world's chemical lithium, according to the International Energy Agency. Securing unrefined Canadian ore allows South Korean cell manufacturers to bypass Chinese conversion channels.

Cell manufacturers previously signed offtake contracts for refined chemicals through intermediary trading houses. Purchasing unrefined concentrate directly from mine operators represents a structural move toward upstream raw material integration, the company said.

Elevra was created through the 2025 merger of Sayona Mining and Piedmont Lithium. The company holds the Quebec mine along with lithium development projects in the United States and Ghana.

Elevra began an expansion of the Quebec operation in mid-2026 to raise throughput. The Canadian government supported the asset with 145 million Canadian dollars from the Canada Growth Fund to lift annual concentrate yield.

The Quebec mine sits roughly 60 kilometers north of Val-d'Or in the Abitibi region. Regional rail lines connect the pit to industrial hubs across Ontario, Michigan and Ohio, reducing ocean shipping exposure.

LG Energy Solution must still direct the Canadian spodumene to qualified regional or allied conversion refineries. North America currently lacks sufficient commercial toll-refining capacity to convert all locally mined spodumene into chemical lithium.

The South Korean manufacturer has established processing partnerships across North America and Australia. Offtake agreements allow LG Energy Solution to direct spodumene shipments to allied converters as new chemical lines come online.

Global lithium spot prices declined between 2023 and 2025 as new mining operations expanded globally. Cell makers used the market downturn to negotiate long-term volume without paying peak-cycle valuation premiums.

The United States Department of the Treasury enforces stricter foreign entity rules beginning in the 2025 and 2026 tax years. Automakers lose consumer tax credits if battery minerals trace back to prohibited supply networks.

Elevra will prepare the first 30,000-ton delivery batch ahead of transfer schedules running through late 2026. Commercial shipments under the second contract tier begin in early 2027.