Thunder Bay edges closer to building a lithium processing plant – by Staff (Northern Ontario Business – September 23, 2022)

https://www.northernontariobusiness.com/

Avalon Advanced Materials in talks to secure supply agreement with South Korean battery maker LG Energy Solutions

South Korean lithium-ion battery maker LG Energy Solution (LGES) is looking to Northern Ontario to secure its raw material supply chain.

Hours after inking a three-year cobalt deal with Electra Battery Materials to source cobalt sulfate from its Temiskaming refinery starting next spring, LGES has entered into negotiations with Kenora lithium mine developer Avalon Advanced Materials to supply them with battery-grade lithium hydroxide by 2025.

It could secure a funding partner that will help Avalon build a much anticipated lithium refinery in Thunder Bay by next year.

In a news release, Avalon said it’s signed a non-binding memorandum of understanding (MOU) with LGES that now kicks off discussions to reach a more definitive supply agreement. Avalon is confident that will be “finalized in no later than six weeks.”

Toronto-based Avalon wants to establish a lithium plant in Thunder Bay to service the battery and electric vehicle manufacturers in southern Ontario and elsewhere. Avalon said in a news release that this preliminary agreement will accelerate its plans to do that.

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