South Korea's SK On Signs Lithium Supply Deal With Global Lithium Resources

Korean EV battery manufacture SK On has signed a Memorandum of Understanding (MOU) with Australia’s Global Lithium Resources to bolster its key battery materials supply chain. The two companies have agreed to explore business opportunities in regard to stable supply of lithium.

Through this MOU, SK On would have potential investment in Global Lithium Resources’ lithium assets.

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.

Global Lithium Resource 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.

Australia is the world’s largest lithium producer and a major producer of other key battery minerals like nickel and cobalt.

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

In June, 2022, it 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.

Jinsuk Ryu, Vice President at SK On, says: “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, adds: “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."

SK On currently operates seven factories in the US, Hungary, China and South Korea and is currently in construction of seven more plants.