Seoul, May 20 (IANS): LG Energy Solution Ltd. (LGES) said it has signed an investment agreement with an Australian lithium developer in an effort to bolster the sourcing of the critical mineral used in electric vehicle (EV) batteries.

Under the agreement signed with Green Technology Metals Ltd., LGES will acquire an approximately 7.89 percent stake in the Australian company and have access to 25 percent of its annual output of lithium ore concentrate for the next five years, the Seoul-based battery maker said in a release.

Lithium ore concentrate is a critical mineral in EV battery supply chains. It is used as a feedstock to extract lithium hydroxide, one of the lithium products used to make cathode materials that determine the power of an EV battery.

LGES said the two companies agreed to build up the partnership for the long haul, reports Yonhap news agency.

Green Technology Metals owns and operates four lithium mines in North America. LGES will be supplied with the lithium ore concentrate mined from the Seymour block in Ontario that has a minerals deposit of some 10 million tonnes, according to LGES.