This is LG Chem's second agreement with a battery metal raw material producer. In April, it agreed to form two joint ventures with China's Zhejiang Huayou Cobalt to ensure cobalt supply for lithium-ion batteries.  

Under the agreement, Nemaska will supply 7,000 tonnes per annum of lithium hydroxide produced at its Shawinigan commercial plant from Whabouchi's spodumene concentrate on a take-or-pay basis for an initial five-year period.

The supply period is expected to start in October 2020, but Nemaska can reschedule this if necessary based on the plant's anticipated commissioning, ramping up and production start dates.

In April, SoftBank Group agreed to invest up to C$99.1 million (US$77.6 million) in Nemaska for up to a 9.9% stake in the company and gained the right of first offer to buy up to 20% of the lithium hydroxide and lithium carbonate produced at the Shawinigan plant.

Nemaska said, with the two agreements in place, it had committed or agreed in principle to hand over 90% of its expected 33,000tpa lithium carbonate equivalent capacity even before it gets to production.