To Strengthen Lithium Supply Chain
SK On announced on Sept. 29 that it has signed a memorandum of understanding (MOU) with Global Lithium Resources in Australia for a stable supply of lithium.
A signing ceremony was held in Perth, Australia, on Sept. 28 with the attendance of Ryu Jin-suk, SK On's head of strategy, and Ron Mitchell, managing director of Global Lithium.
SK On has secured a stable supply of lithium concentrate (spodumene) produced in mines owned and developed by Global Lithium Resources. In addition, the company will be given an opportunity to purchase a stake in a production project being promoted by the Australian company.
Established in 2018, Global Lithium Resources is listed on the Australian Stock Exchange. It is now implementing two large-scale lithium concentrate development projects, the Manna Project and the Marble Bar Project, in Australia. Lithium reserves in these mines are estimated at 500,000 tons.
SK On has been steadily strengthening its supply chain of key battery materials to expand production and cope with geopolitical risk. It has been seeking to secure raw materials in various countries such as Australia, Canada, Brazil and Argentina.
In June, SK On inked a memorandum of understanding with POSCO Holdings to cooperate in projects across the battery value chain. In 2019, it struck a deal with Switzerland’s Glencore, which is the world's No. 1 cobalt producer, to purchase 30,000 tons of cobalt for six years from 2020 to 2025.