이미지 확대Cosmo Advanced Materials & Technology (AM&T), a Korean cathode material producer for secondary battery manufacturers, has obtained exclusive distribution rights for lithium reserves, estimated to be enough to churn out 20,000 tons of cathode materials annually, from a Texas mine in the United States.
According to sources on Monday, Cosmo AM&T will participate as an off-taker in Round Top Mountain Development Consortium located in West Texas, USA with exclusive rights to distribute lithium from the mine owned by the U.S. government. The Round Top Mountain near Sierra Blanca, in Hudspeth County, Texas, holds one of the biggest deposits of heavy rare-earth elements in the U.S., including lithium.
Cosmo AM&T is the first Korean company with direct access to such materials in North America, the largest electric vehicle market, and this marks the first case of cooperation between the Korean battery-making industry and the U.S. government that hopes to lower its reliance on China for battery materials.
The company seeks to make cathode materials using lithium from the mine with a potential production capacity of 10,000 tons per year and provide them to a potential Korean battery maker, which could be LG Energy Solution.
The mine development project has a net present value of $1.56 billion estimated in a preliminary economic assessment level study in August 2019. USA Rare Earth, which formed a partnership with Texas Mineral Resources for the project, is set to go public next year to finance the project.
Lithium is a critical industrial mineral and technology metal especially for electric vehicles. Annual lithium production in the U.S. is about 5,000 tons. The initial lithium production of the Round Top mine is estimated to exceed 10,000 tons per year. Considering that 0.5 ton of lithium is required to produce 1 ton of cathode materials, it would be possible to produce 20,000 tons of cathode materials annually through the mine. The production is worth about 1 trillion won ($783 million).
If Cosmo AM&T’s entry into the U.S. market is confirmed, the firm will build a plant near the lithium mine and procure lithium locally to produce cathode materials for electric vehicles. LG Energy Solution, which is operating a battery pack factory in Michigan, is expected to be its major customer in the U.S. Market analysts see Cosmo AM&T’s production capacity in North America will increase further from 30,000 tons per year in the initial stage.
By Yang Yeon-ho and Minu Kim
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