Published: November 11, 2022 |

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Compass Minerals has signed a binding, multiyear supply agreement to provide LG Energy Solution with battery-grade lithium carbonate from its Ogden, Utah solar evaporation lithium brine development.

Per the terms of the agreement, Compass Minerals would deliver up to 40 percent of its planned, phase-one battery-grade lithium carbonate production to LGES for an initial 6-year term from supply commencement. Purchase pricing will be based on market index under the agreement.

The company expects an annual commercial production capacity of approximately 35 kMT lithium carbonate equivalent (LCE) once fully operational, with an initial phase-one capacity of approximately 11 kMT battery-grade lithium carbonate coming online by 2025.

“This binding supply agreement represents an important milestone for our company’s entry into a rapidly growing domestic lithium market,” said Chris Yandell, head of lithium for Compass Minerals.

“We are excited to partner with a proven manufacturing leader like LGES to help enable the buildout of a robust and secure advanced battery supply chain,” added Yandell.

Compass Minerals is pursuing the sustainable development of an approximately 2.4 mMT LCE resource on the Great Salt Lake, readily available for extraction through existing permits, water rights, and operational infrastructure at the company’s Ogden facility, the largest of its kind in the Western Hemisphere.

“This offtake agreement with Compass Minerals culminates our continued endeavors to establish a stable supply for critical minerals in North America, as we adapt to recent regulatory changes and intensifying competition over key battery raw materials,” said Dongsoo Kim, senior vice president of the Procurement Center at LG Energy Solution.

The signed supply agreement represents the culmination of negotiations between Compass Minerals and LGES. The supply agreement is subject to the successful start of commercial-scale, lithium carbonate production at Compass Minerals’ Ogden facility and full product qualification. The companies also expect to negotiate in good faith on a portion of Compass Minerals’ anticipated phase-two production of battery-grade lithium hydroxide.

About Compass Minerals
Compass Minerals is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops, while supporting sustainable agriculture. Additionally, the company is pursuing development of a sustainable lithium brine resource to support the North American battery market and is a minority owner of Fortress North America, a next-generation fire retardant company. Compass Minerals operates 12 production and packaging facilities with nearly 2,000 employees throughout the U.S., Canada and the U.K.

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