Canadian miners eye more lithium deals after LG Energy signs three deals in 24 hours – by Naimul Karim (Financial Post – September 24, 2022)

The deals paint a hopeful picture at a time when demand for EVs has increased and the world looks to shift away from coal

South Korean battery maker LG Energy Solution Ltd. announced three agreements in a span of 24 hours with Canadian miners to source materials required to make batteries for electric vehicles (EVs) as it looks to boost its focus on North America.

After announcing its three-year cobalt deal with Toronto-based Electra Battery Materials Corp. on Thursday morning, the Tesla Inc. supplier announced agreements to source lithium from Toronto-based miner Avalon Advanced Materials Inc. and Winnipeg-based Snow Lake Resources Avalon Advanced Materials Ltd., which is developing a lithium project in Manitoba.

The miners, whose share prices rose immediately after the announcements, expect more global battery makers to ink deals with Canadian companies due to the Inflation Reduction Act that United States President Joe Biden signed last month.

The act states that EVs containing batteries assembled in North America and made up of critical minerals sourced from the region could receive US$7,000′ worth of tax credits, which could offset some of China’s advantages in the field.

For the rest of this article: