LG Energy Solution has announced plans to source graphite from Australian firm Syrah Resources Limited.

The South Korean battery maker will be procuring 2,000 tonnes of natural graphite, per year, from the Aussie company, from 2025 onwards – with plans to increase the order to 10,000 tonnes a year.

The graphite is a key component of lithium-ion batteries, used in electric vehicles.

This is part of LG’s plans to decrease its reliance on China, ahead of the US Inflation Reduction Act taking effect.

The actual graphite won’t be mined in Australia, but rather from Syrah Resources’ mine in Mozambique.

Syrah will build a dedicated production factory in Louisiana, meaning the Aussie company can receive American subsidies for electric vehicles.

“LG Energy Solution is a tier 1 global manufacturer of lithium-ion batteries and their rapidly expanding manufacturing position in the USA is aligned with Syrah’s growth plans,” said Shaun Verner, Managing Director and CEO of Syrah.

“Our partnership with Syrah demonstrates our devotion to diversifying the critical minerals portfolio by directly procuring from local and regional suppliers in North America, more so as natural graphite is one of the battery materials with the least diverse supply chain,” said Youngsoo Kwon, CEO of LG Energy Solution.

“As we aim to not only expand our customer base but also increase our production capacity in North America, securing a competitive local supply chain for key critical minerals will play a crucial role in ensuring a stable delivery of the world-best quality products to our customers.”