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Umicore partners with LG Chem for the supply of NMC cathode materials
Umicore and LG Chem have concluded a multi-year strategic supply agreement for NMC (Nickel Manganese Cobalt) cathode materials to serve LG Chem’s needs out of Umicore plants in Poland, Korea and China.
The supply agreement takes effect in 2020 and covers a total volume of 125,000 metric tonnes to be delivered over several years. The companies are also entering a technology licensing arrangement covering fundamental IP rights, a press release reads. This supply agreement will support LG Chem in meeting the growing demand for rechargeable lithium-ion batteries as car manufacturers are expanding their offering of longer-range electric vehicle models in several regions. Most of the volumes covered by this agreement will be supplied from Umicore’s greenfield facility in Poland. The technology agreement provides for a cross-licensing set-up; as a result of this agreement, both companies will share user rights on a selection of fundamental global patents for different high-end NMC cathode materials used in automotive and energy storage applications. Umicore is also assisting LG Chem in closing the loop by recycling its production residues and the companies are currently discussing the terms of a long-term cooperation in battery recycling.