In order to strengthen their business relations and develop technologies and investments in the electromobility industry, SQM (Sociedad Química y Minera de Chile) and LG Energy Solution signed a memorandum of understanding that complements the lithium supply agreement already signed by both companies.
It is worth noting that LG is currently one of the world leaders in battery production, with 30 years of experience in advanced battery technology. In this sense, the organization’s Product Director, Myung Hwan Kim, highlighted that SQM is a valuable business partner for LG Energy Solution, and by joining forces they hope to continue extending this alliance to lead the dynamic sector of secondary batteries, as well as in sustainable growth.
SQM’s General Manager, Ricardo Ramos, said that this agreement consolidates the company’s commitment to the development of world-class lithium products, with high added value and in line with the sustainability of its operations and respect for the environment.
“We are proud that a technology company of the prestige and relevance as LG trusts us to innovate in Chile and thus continue contributing to the progress of our country,” he added.
Projects and Element Importance
Through an official statement, SQM detailed that among the potential joint investment projects are the production of Lithium cathodes and Lithium Hydroxide, as well as recycling projects in strategic locations, which will be studied in greater detail by SQM and LG. Among these, the agreement to discuss the construction of a cathode material production plant in Chile stands out.
The magnitude and importance of this alliance is manifested in the fact that 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 with high lithium content in the Salar de Atacama, which are then transported to its facilities located on the outskirts of the city of Antofagasta.
This region is home to the world’s largest lithium carbonate and lithium hydroxide production plant, 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.