Snow Lake Resources (TSXV: SNOW) and LG Chem (KRX: 051910) have entered into a Memorandum of Understanding (MOU) to jointly develop a comprehensive battery materials supply chain in North America for the burgeoning electric vehicle (EV) market.

The MOU provides a framework for the parties to develop a business relationship focused on the supply of high-quality lithium hydroxide from Snow Lake's proposed spodumene conversion facility in Snow Lake, Manitoba, to LG Chem's battery cell manufacturing operations in North America.

LG Chem is a global leader in the manufacture of lithium-ion batteries, with a strong presence in the North American EV market. The company supplies batteries to some of the world's leading automakers, including General Motors, Chrysler, Audi, and BMW.

Under the terms of the MOU, the parties will work together to finalize off-take agreements for the supply of lithium hydroxide from Snow Lake's proposed facility. The MOU is non-binding and is subject to the negotiation and execution of definitive agreements.

Snow Lake is advancing its 100%-owned SnowPolis lithium-ion battery materials production hub in Snow Lake, Manitoba, which is ideally located in the heart of North America's electric vehicle market. The SnowPolis project includes a proposed spodumene conversion facility, which is expected to produce up to 30,000 tonnes per year of high-quality lithium hydroxide.

The SnowPolis project is supported by a high-grade, drill-confirmed lithium deposit, excellent infrastructural access, a skilled workforce, and a mining-friendly jurisdiction. A Feasibility Study and Environmental Assessment for the project are currently underway, with permitting expected to be complete by Q4 2020. Construction is expected to begin in Q1 2021, with first production expected in Q4 2021.

"We are very pleased to be partnering with LG Chem, a global leader in the battery industry, to develop a strategic supply relationship for our proposed spodumene conversion facility in Snow Lake, Manitoba," said Snow Lake President and CEO Michael Rowley.

"This partnership is a significant vote of confidence in the SnowPolis project and our ability to deliver high-quality lithium hydroxide to the North American EV market," said Rowley.

"We look forward to working with Snow Lake to develop a long-term, strategic relationship that will ensure a reliable and cost-effective supply of lithium hydroxide for our North American battery operations," said LG Chem North America COO second vice-president David Young Kim.