South Korean battery maker LG Energy Solution Ltd. has signed an initial contract to purchase 700,000 dry metric tons of lithium ore concentrate from an Australian miner, a document showed Wednesday, a deal that could help LG secure a supply of lithium-ion battery materials.

A disclosure document posted by Liontown Resources Ltd. said it will supply the lithium spodumene concentrate to LG Energy Solution under a five-year offtake agreement starting 2024, with a potential extension for another five years.

The output will come from its $341 million lithium mining project under way in Western Australia.

Lithium spodumene is a feedstock for lithium chemicals used in the production of batteries for electric vehicles (EVs). With 700,000 dmt of spodumene, a battery maker can roughly produce enough to be used in some 2.5 million EVs. (Yonhap)