South Korea's battery maker LG Energy Solution Ltd. announced on Friday that it has signed a lithium concentrate supply contract with Australian company Green Technology Metals, which operates lithium mines in North America.

Green Technology Metals owns and operates four lithium mines in the North American region. Through a 7.89% equity investment, LG Energy Solution will receive 25% of the lithium concentrate produced by the Australian company for a period of five years. Lithium concentrate is a key mineral that can extract lithium hydroxide, a core material for batteries. 

Initially, LG Energy Solution will source lithium concentrate from Green Technology Metals' Seymour mine in Canada and secure supply from the remaining mines in the future. The Seymour mine holds approximately 10 million tons of lithium reserves.

"Ahead of the US Inflation Reduction Act taking effect, we have proactively obtained competitive core minerals in the strategic North American market," chief production officer of LG Energy Solution Kim Myung-hwan said. "Our focus is on delivering the utmost value to our customers through stable and differentiated raw material supply, ensuring cost competitiveness."