LG Chem to Take Stake in Piedmont for $75 Million
February 16 2023 - 7:13PM
Dow Jones News
By Kwanwoo Jun
LG Chem Ltd. is buying a 5.7% stake in U.S. mining company
Piedmont Lithium Inc. for $75 million, strengthening its presence
in the North American battery-material supply chain.
The South Korean company said in a regulatory filing early
Friday that it plans to buy about 1.1 million of Piedmont's common
shares on Feb. 23.
Under a separate offtake deal reached by both sides, Piedmont
will supply LG Chem with 200,000 tons of spodumene concentrate, a
high-purity lithium ore, over the next four years.
The agreements illustrate tax credits and other benefits that
the U.S. Inflation Reduction Act grants to battery industries.
Lithium is one of the key materials needed to make batteries.
"We welcome LG Chem as a shareholder in Piedmont and are excited
to partner with them to supply North American lithium that will
meet the requirements of the IRA and support the development of the
U.S. battery supply chain," Piedmont President and CEO Keith
Phillips said in a press release.
"This agreement allows LG Chem to provide differentiated values
to North American customers with products that satisfy IRA
standards by preemptively securing raw materials in the U.S., our
key market," LG Chem Vice Chairman and CEO Shin Hak-cheol said in
the release.
LG Chem plans to build a $3 billion factory in Clarksville,
Tennessee, to supply battery materials for electric vehicles. LG
Chem is the parent company of South Korea-based EV battery maker LG
Energy Solution Ltd.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
February 16, 2023 19:58 ET (00:58 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Piedmont Lithium (ASX:PLL)
Historical Stock Chart
From Oct 2024 to Nov 2024
Piedmont Lithium (ASX:PLL)
Historical Stock Chart
From Nov 2023 to Nov 2024
