SK On signs a lithium supply deal with Australia's Lake Resources.
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SK On signs a lithium supply deal with Australia's Lake Resources.

Lake Resources will supply 230,000 tons of lithium to SK On in five years, starting from the fourth quarter of 2024.

EV battery manufacturer SK On has signed a lithium supply deal with Australia’s Lake Resources. As per the agreement, Lake Resources will supply battery-grade lithium to SK On starting from the fourth quarter of 2024.

The companies have signed the deal for five years, with an option for additional five years. Lake Resources will supply 15,000 tons of lithium for the first two years and 25,000 tons of lithium from the third year. In total, SK On will secure 230,000 tons of lithium, enough to produce batteries for approximately 4.9 million electric vehicles.

Lake Resources currently develops four lithium brine projects in Argentina. Of them, Lake Resources will supply high-purity lithium from its flagship Kachi Project.

SK On will use this lithium at its battery manufacturing plants in the US. The first of SK On’s two plants in Georgia began mass production of EV batteries earlier this year, while the second one is expected to be operational in 2023.

BlueOval SK, the joint venture between SK On and Ford Motor Company, is building three plants in the US, one in Tennessee and two others in Kentucky. They are expected to be operational from 2025.

Recently, SK On also signed an MoU with Global Lithium Resources for lithium supply. The company 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 utilizes environment-friendly direct lithium extraction technology for the production of lithium.” She added, “With this agreement, both parties will strengthen mutual partnership to advance opportunities to secure sustainable sourcing of raw materials in the future.”

Lake Resources CEO David Dickson said, “The agreement cements the ability of Lake Resources to scale up environmentally responsible production.” He added, “We look forward to a long and beneficial relationship with SK On.

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