In June 2021, QPM welcomed LG Energy Solution (“LGES”) and POSCO as shareholders of QPM. LGES and POSCO agreed to invest US$15m by way of an equity investment in QPM. The transaction will result in LGES and POSCO having respective ownership interests of 7.5% and 3.2%.
As part of the equity investment, QPM has also signed binding offtake agreements with LGES and POSCO for the sale of nickel and cobalt from the TECH Project. Initially, QPM will supply nickel and cobalt in the form of MHP (mixed hydroxide precipitate). After a certification period of approximately 12 months, QPM will then supply advanced battery materials nickel sulfate and cobalt sulfate.
The key terms of the offtake agreement are detailed below:
About LGES and POSCO
LG Energy Solution is a global leading battery maker providing the best solutions within the energy sector for a better world. Based on its 30 years of R&D experience, the company delivers the most advanced batteries that have been infused with cutting-edge technologies to EVs, Energy Storage Systems (ESS) and Mobility & IT applications across the world. LG Energy Solution’s Advanced Automotive Battery leads the market with its outstanding technologies and products. Home to the world's first EV battery lineup, LG Energy Solution provides the best battery solutions for EVs worldwide.
POSCO is the largest fully integrated steel producer in Korea, and one of the largest steel producers in the world, based on annual crude steel production. POSCO produced approximately 40.6 million tons of crude steel and diversified line of steel products in 2020. POSCO also engage in businesses that complement our steel manufacturing operations as well as carefully seek out promising investment opportunities to diversify its businesses both vertically and horizontally. POSCO’s affiliate companies are involved in a wide range of industries including chemicals, trading, engineering & construction, energy and so on.