LG Energy Solution Ltd., South Korea's leading battery company, said Monday it has signed a six-year deal with Australian Mines Ltd. for a stable supply of key battery materials.

In the deal that will begin at the end of 2024, LG Energy Solution will receive 71,000 tons of nickel and 7,000 tons of cobalt from the Australian company over six years, the South Korean firm said in a statement.

"Securing key raw materials and a responsible battery supply chain has become a critical element in gaining a greater control within the industry, as the demand for electric vehicles worldwide has heightened in recent years," LG Energy Solution President and CEO Kim Jong-hyun said in the statement.

The secured materials will be enough to produce batteries that can power 1.3 million high-performance electric vehicles, it said. 

The deal will help LG Energy gain an upper hand in securing a stable supply of the key ingredients as the race to procure raw materials for EV batteries is getting fierce amid growing global demand for EVs, the statement said. 

LG Energy is the battery manufacturing unit of South Korea's chemicals-to-electronics conglomerate LG Group. (Yonhap)