SK On strikes lithium supply deal with Australia’s Lake Resources

  • SK On will receive battery-grade lithium for up to 10 years after acquiring 10% stake in Lake Resources
  • Agreement Strengthens SK On’s Supply Chain Diversification Efforts with Global Partners

Seoul, South Korea, October 12, 2022 /PRNewswire/ — SK enabledone of the world’s leading manufacturers of electric vehicle (EV) batteries, today announced that it has signed a lithium supply agreement with australia Lake resourcesa move that will further strengthen its supply chain of key battery materials in response to robust business growth and geopolitical risks.

Under the terms of the agreement signed on October 11, SK Battery-grade lithium is expected to be delivered as early as Q4 2024 following the acquisition of a 10% stake in Lake Resources. The offtake agreement has an initial term of five years with an option for an additional five years.

SK On would receive 15,000 tons of lithium for the first two years and 25,000 tons of lithium from the third year, meaning the Korean battery maker can secure a total of 230,000 tons of lithium, enough to produce batteries for about 4.9 million electricity. vehicles (VE).

Founded in 1997, Lake Resources is currently developing four lithium brine projects in Argentina. Among them, Lake Resources will supply high-purity lithium from its flagship Kachi project.

The latest agreement also aligns with SK On’s commitment to ESG (Environment, Social, Governance) principles as Lake Resources produces lithium using a Direct Lithium Mining (DLE) technique, an environmentally friendly mining method. the environment developed by its American partner Lilac Solutions. Lilac Solutions’ DLE technique offers a noticeable reduction in brine, water use and land use because its extraction process includes brine re-injection.

SK On plans to use lithium supplied from its battery manufacturing plants in the United States. The first of two SK On factories in Georgia began mass production of EV batteries earlier this year, while the second is expected to be operational in 2023.

BlueOval SKthe joint venture between SK On and Ford Motor Company, is building three factories in the United States – one in Tennessee and two others in Kentucky. They should be operational from 2025.

The deal with Lake Resources is SK On’s latest effort to strengthen its supply chain of key battery materials with Australian mineral developers. On September 28SK We signed a memorandum of understanding (MOU) with Global Lithium Resources for a stable supply of lithium.

In addition to AustraliaSK On is also exploring various options to secure the supply of critical battery minerals in countries like Canada, Brazil and Argentina.

SK On Vice President Jinsuk Ryu said: “Lake Resources fits particularly well with SK On’s ESG policy as it uses environmentally friendly direct lithium mining technology for lithium production.” She added, “With this agreement, both parties will strengthen their mutual partnership to advance sustainable raw material sourcing opportunities in the future.”

Lake Resources CEO david dickson said: “The deal cements Lake Resources’ ability to scale up environmentally friendly production.” He added, “We look forward to a long and beneficial relationship with SK On.”

About SK Sur

SK enabled is a leading developer, manufacturer and supplier of electric vehicle (EV) battery solutions whose mission is to make our world a cleaner and more convenient place. Established in October 2021 after separating a battery business from SK Innovation, South Korea largest energy company, SK On aims to become a global leader in the clean energy industry by leveraging its global production base and R&D capabilities, as well as its know-how in production and quality management.

Based at Seoul, South KoreaSK On has a global presence with battery factories currently in operation or under construction across United States, Europeand Asia. SK We are part of SK Group, South Korea second largest conglomerate with major global companies in energy, semiconductors and life sciences.

SOURCE SK enabled


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