LG Energy Solution said it will procure lithium hydroxide from Germany’s Vulcan Energy.
Lithium hydroxide can be easily synthesized with nickel and is used to make electric vehicle batteries.
The South Korean battery maker said it plans to procure 45,000 metric tonnes of the material from Vulcan Energy from 2025 to 2029.
The amount is enough to manufacture batteries for use in around 1.1 million units of electric vehicles, LG Energy Solution said.
Vulcan Energy directly extracts lithium from geothermal brine. The method uses waste heat which reduces the amount of carbon emitted during the extraction.
Meanwhile, LG Energy Solution previously signed a similar contract with Chile’s SQM to procure lithium up to 2029.