TORONTO, Sept. 22,
2022 /CNW/ - Avalon Advanced Materials
Inc. (TSX: AVL) (OTCQB: AVLNF) ("Avalon" or the "Company")
") is pleased to announce that it has signed a non-binding
memorandum of understanding (the "MOU") with LG Energy
Solution (LGES; KRX: 373220) to supply LGES with a
battery-grade lithium hydroxide starting in 2025.
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.
Under the terms of the MOU, Avalon would commit, for five years
initially, to provide LGES with at least 50% of its planned initial
lithium hydroxide production from its Thunder Bay facility, with the potential to
increase production as demand grows. LGES recognizes the strategic
value of Avalon's planned lithium processing facility as a bridge
to connect downstream users with the lithium battery material
required to meet production targets.
Pursuant to the MOU, the parties will continue discussions to
enter into a definitive supply agreement, which is intended to be
finalized in no later than 6 weeks.
Demand for lithium hydroxide and lithium carbonate continues to
grow in North America as new
electric vehicle and battery manufacturing capacity is established
both in the U.S. and in Canada.
Ontario is now well positioned to
take advantage of the rapid growth with the announcement in March,
2022 of Ontario's first-ever
Critical Minerals Strategy, which Premier Doug Ford described as "the government's
blueprint to connect industries, resources and workers in our
province's north to the future of manufacturing in the south as we
build up home-grown supply chains."
Most importantly, Ontario's
rich endowment in critical minerals in the North positions
Ontario well to create the full
supply chains and take advantage of the demand for critical
minerals in the emerging new advanced technology manufacturing
sector of the economy. It will also help expand the economy in the
North and provide many remote First Nation communities with new
economic development opportunities.
"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."
The MOU builds on growing Canada-South
Korea bilateral economic ties and supports clean energy and
foreign direct investment objectives.
About Avalon Advanced Materials
Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development
company specializing in sustainably-produced materials for clean
technology. The Company now has four advanced stage projects,
providing investors with exposure to lithium, tin and indium, as
well as rare earth elements, tantalum, cesium and zirconium. Avalon
is currently focusing on developing its Separation Rapids Lithium
Project near Kenora, Ontario while
continuing to advance other projects, including its 100%-owned
Lilypad Cesium-Tantalum-Lithium Project located near Fort Hope, Ontario. Social responsibility and
environmental stewardship are corporate cornerstones.
This news release contains "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities
legislation. Forward-looking statements include, but are not
limited to, statements that Avalon plans to establish a
regional lithium battery materials supply chain, that the agreement
helps advance the Company's vision to develop a sustainable and
secure domestic lithium supply chain, that entering into a
commercial relationship with a proven manufacturing leader like
LGES will help enable that vision, statements related to the terms
of the MOU, that the parties will continue discussions to enter
into a definitive supply agreement, which is intended to be
finalized in no later than 6 weeks, and statements related to
Ontario's critical mineral
strategy and opportunities. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "potential", "scheduled",
"anticipates", "continues", "expects" or "does not expect", "is
expected", "scheduled", "targeted", "planned", or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might" or "will be" or
"will not be" taken, reached or result, "will occur" or "be
achieved". Forward-looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Avalon to be materially different from those expressed or implied
by such forward-looking statements. Forward-looking statements are
based on assumptions management believes to be reasonable at the
time such statements are made. Although Avalon has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. Factors that may cause
actual results to differ materially from expected results described
in forward-looking statements include, but are not limited to
market conditions, and the possibility of cost overruns or
unanticipated costs and expenses as well as those risk factors set
out in the Company's current Annual Information Form, Management's
Discussion and Analysis and other disclosure documents available
under the Company's profile at www.SEDAR.com. There
can be no assurance that such statements will prove to be accurate,
as actual results and future events could differ materially from
those anticipated in such statements. Such forward-looking
statements have been provided for the purpose of assisting
investors in understanding the Company's plans and objectives and
may not be appropriate for other purposes. Accordingly, readers
should not place undue reliance on forward-looking statements.
Avalon does not undertake to update any forward-looking statements
that are contained herein, except in accordance with applicable
securities laws.
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SOURCE Avalon Advanced Materials Inc.