Deal offers option to secure U.S.-processed graphite from 2027 Partnership with U.S. firm expanded in efforts to comply with IRA rules
SK On, a leading global electric vehicle (EV) battery
manufacturer, announced today it has signed a conditional offtake agreement
with U.S. graphite company Westwater Resources Inc. in a move to secure
battery-grade natural graphite in North America. Under the terms of the agreement, SK On can source a
total of 34,000 tons of natural graphite anode products processed at Westwater’s Kellyton Graphite Plant located
near Kellyton, Alabama, from 2027 to 2031. SK On plans to use the product for
its battery manufacturing facilities in the U.S.
The
latest deal expands the existing partnership between the two companies. SK On
and Westwater inked a joint development agreement last year and have been
working together to develop environmentally responsible, high-performance anode
materials tailored for SK On batteries. Anode is one of the four main components for
lithium-ion batteries along with cathode, electrolyte and separator. It
determines the battery life and charging speed. Currently, graphite is the
dominating anode material in commercial lithium-ion batteries. The deal is expected to boost SK On’s plans to strengthen its supply
chain in North America, while demonstrating its efforts to comply the rules of
the Inflation Reduction Act (IRA). “We will continue seeking partnerships with promising battery
material companies in the region,” said Park Jong-jin,
Vice President of Strategic Purchasing at SK On. “We are excited to partner with a leading global manufacturer of EV
batteries and assist SK On to further establish its U.S.-based supply chain,” said Terence Cryan, Westwater’s Executive
Chairman. SK On currently operates two EV battery plants in
Commerce, Georgia. The South Korean battery maker is also building three
battery plants in the U.S. with Ford Motor Co. BlueOval SK, the joint venture
between SK On and Ford, plans to operate two battery plants in Glendale,
Kentucky, and one factory in Stanton, Tennessee. SK On is also building an EV battery plant in Bartow
County, Georgia through a joint venture with Hyundai Motor Group. Established in 1977, Westwater Resources is an energy
technology company focused on developing U.S.-based battery-grade natural
graphite anode materials. Headquartered in Centennial, Colorado, the company
holds mineral rights to explore and potentially mine the Coosa Graphite Deposit
that is located across 42,000 acres in Coosa County, Alabama.
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