TORONTO, Sept. 22, 2022 /PRNewswire/ – Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) (“Avalon” or the “Company”) “) is pleased to announce that it has signed a non-binding memorandum of understanding (the “MOU”) with LG Energy Solutions (LGES; KRX: 373220) to supply LGES with a battery-grade lithium hydroxide starting in 2025.
Avalon plans to establish a regional lithium battery materials supply chain in Ontario to serve the needs of future electric vehicle and lithium-ion battery manufacturers in southern Ontario and elsewhere.
The MOU was signed during the visit of South Korea’s President, Yoon Suk Yeol to Canadaat a ceremony supported by the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), Natural Resources Canada (NRCAN) and other partners.
LGES is a leading global manufacturer of lithium-ion batteries for electric vehicles and energy storage systems. Avalon is accelerating its plans for establishing a lithium battery materials processing facility in Thunder Bay, Ontario and the agreement today helps advance the Company’s vision to develop a sustainable and secure domestic lithium supply chain. Entering into a commercial relationship with a proven manufacturing leader like LGES will help enable that vision.
Under the terms of the MOU, Avalon would commit, for five years initially, to provide LGES with at least 50% of its planned initial lithium hydroxide production from its Thunder Bay facility, with the potential to increase production as demand grows. LGES recognizes the strategic value of Avalon’s planned lithium processing facility as a bridge to connect downstream users with the lithium battery material required to meet production targets.
Pursuant to the MOU, the parties will continue discussions to enter into …