SK On signs MOU with
Global Lithium Resources to bolster key battery materials supply chain - MOU with
Australian firm includes comprehensive cooperation in lithium supply, joint
investment and development of downstream lithium assets - MOU to beef up SK On’s supply
chain resilience in response to rapid business growth and geopolitical risks SEOUL, Sept. 29, 2022 ㅡㅡ SK On, a
global leading electric vehicle battery manufacturer, announced today it signed
a Memorandum of Understanding (MOU) with Australia’s Global Lithium Resources
to bolster its key battery materials supply chain. The representatives from SK On and Global
Lithium Resources signed the MOU in Perth, Australia on Sept. 28. The two
sides agreed to explore future business opportunities together in regard to
stable supply of lithium, a critical raw material for EV battery. Through this MOU, SK On would have
potential investment, funding and offtake opportunities in Global Lithium
Resources’ lithium assets. SK On is one of the fastest-growing
EV battery manufacturers in the industry. It ranked ninth in terms of
global market share in 2019, but has shot up to fifth this year. The company
currently operates seven factories in the United States, Hungary, China and
South Korea and is currently in construction of seven more plants. Incorporated in 2018, Global Lithium
was listed on the Australian Stock Exchange last year. It is
developing two flagship lithium assets, located in Western Australia, one of
the world’s most famous mining jurisdictions, to produce lithium from spodumene
mineral. Lithium is a critical raw material
used in lithium-ion batteries that enables them to charge faster and have more
energy density than traditional batteries. Australia is the world’s largest
lithium producer and a major producer of other key battery minerals like nickel
and cobalt. SK On has been steadily reinforcing
its supply chain on key battery materials to cope with geopolitical instability
and expansion of its global production capacity. In addition to the partnership
with Global Lithium Resources, the company is exploring various
options to secure the supply of critical battery minerals in countries like
Canada, Brazil and Argentina. In June, SK On
signed an MOU with South Korea’s POSCO Holdings to
strengthen collaboration across the entire battery value chain, ranging from
secondary battery raw materials to recycling. In 2019, SK On signed a supply
agreement with Switzerland-based Glencore, the world’s largest supplier of
cobalt, to secure cobalt for six years from 2020 to 2025. Jinsuk Ryu, Vice President at SK On,
said, “This MOU with Global Lithium will strategically support SKO’s global
production and help explore potential business opportunities.” She added, “I
believe that both parties will support each other to help accelerate the growth
of business and cooperate further to explore potential opportunities in the
EV supply chain.” Ron Mitchell, Managing Director at
Global Lithium, said, “I am extremely excited that Global Lithium has signed
this MOU with Korea’s SK On, a leading manufacturer of lithium-ion batteries
for the automotive industry on a global scale. The scope of this partnership
has the potential to strengthen and diversify the future of Global Lithium’s
projects in Western Australia both in the near term and in the years
ahead.” <END>
About SK On SK On is a global leading electric
vehicle (EV) battery developer, manufacturer, and solutions provider whose
mission is to make our world a cleaner and more convenient place. Established in October 2021 after
splitting off a battery business from SK Innovation, South Korea’s largest
energy company, SK On aims to become a world leader in the clean energy
industry by leveraging its global production base and R&D capabilities, as
well as its production and quality management know-how. Headquartered in Seoul, South Korea,
SK On has a worldwide presence with battery plants currently operating or in
construction across the United States, Europe, and Asia.
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