Avalon and LG Energy Solution Sign MoU to Accelerate Ontario's Lithium Battery Materials Supply Chain

Avalon plans to establish a regional lithium battery materials supply chain in Ontario to serve the needs of future electric vehicle and lithium-ion battery manufacturers in southern Ontario and elsewhere.

The MOU was signed during the visit of South Korea's President, Yoon Suk Yeol to Canada, at a ceremony supported by the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), Natural Resources Canada (NRCAN) and other partners.

LGES is a leading global manufacturer of lithium-ion batteries for electric vehicles and energy storage systems. Avalon is accelerating its plans for establishing a lithium battery materials processing facility in Thunder Bay, Ontario and the agreement today helps advance the Company's vision to develop a sustainable and secure domestic lithium supply chain. Entering into a commercial relationship with a proven manufacturing leader like LGES will help enable that vision.

"As we have recently announced our mid-to long-term strategy to focus on North America, the fastest growing EV market, this partnership serves as a crucial step towards securing a stable key raw material supply chain in the region," said Youngsoo Kwon, CEO of LG Energy Solution. "By constantly investing in upstream suppliers and establishing strategic partnerships with major suppliers of critical minerals, LGES will continue to ensure the steady delivery of our top-quality products, thereby further advancing the global transition to EV's and ultimately to a sustainable future."

Avalon President Don Bubar commented, "We are delighted to enter into this agreement with LGES to support our aspirations of establishing the mid-stream processing capacity in Thunder Bay to take advantage of the many lithium resources that occur in northwestern Ontario to create the supply chain for the emerging lithium-ion battery manufacturing capacity in southern Ontario. As was noted by Premier Ford, this creates a win-win for Ontario's economy in both the south and the north and will also create many new economic development opportunities for remote Indigenous communities."