LG Energy Solution Secured Lithium Supply Deal
The company has finalized a four-year agreement to source raw materials from a Quebec mine.
Updated on Oct. 7, 2026 in Electric Vehicles
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LG Energy Solution has entered a binding offtake agreement with Elevra Lithium to receive 240,000 dry metric tonnes of spodumene concentrate. This supply will support the manufacturing of battery components for North American energy storage demands.
Why it matters
The deal helps diversify raw material sourcing and strengthens supply chain resilience for LG Energy Solution. By securing domestic production from Quebec, the company aims to better meet the growing regional demand for energy storage systems.
Elevra Lithium will supply 240,000 dry metric tonnes of spodumene concentrate over a four-year term. This material is extracted from the operational North American Lithium project in Quebec.
The players
LG Energy Solution
This South Korean company is a global leader in battery manufacturing and energy storage technology.
Elevra Lithium
The firm operates mining projects focused on the extraction of lithium-bearing minerals.
NextStar Energy
This facility is a major Canadian battery production site representing a multi-billion dollar investment.
The details
The sourced spodumene concentrate will be processed into lithium carbonate or lithium hydroxide for use in battery production. This initiative aligns with the scaling of the NextStar Energy facility in Windsor, Canada, which involves a CAD 5 billion investment.
Timeline
The NextStar Energy facility commenced production in 2025.
LG Energy Solution announced the supply agreement on October 7, 2026.
Delivery of the spodumene concentrate is expected to begin in late 2026.
Roadmap
This agreement underscores a strategic push by major battery manufacturers to localize supply chains within North America to mitigate global logistics risks. It reflects the broader industry transition toward securing dedicated mineral access to feed high-capacity regional production hubs.
The stabilization of raw material supplies supports the long-term viability of the NextStar Energy facility, which is expected to create 2,500 direct jobs. This expansion ensures that regional battery production remains competitive, potentially impacting the future cost and availability of energy storage solutions.
The takeaway
Securing consistent lithium streams is critical for manufacturers looking to scale energy storage infrastructure effectively. Companies that prioritize regionalized partnerships often build more resilient production pipelines against global market volatility.
Further reading
Learn more about the latest developments in the Electric Vehicles industry.
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