{"id":11853,"date":"2022-11-07T09:22:15","date_gmt":"2022-11-07T00:22:15","guid":{"rendered":"https:\/\/askinno.com\/global\/?p=11853"},"modified":"2022-11-07T11:43:55","modified_gmt":"2022-11-07T02:43:55","slug":"sk-on-signs-lithium-hydroxide-supply-deal-with-worlds-leading-producer-sqm","status":"publish","type":"post","link":"https:\/\/askinno.com\/global\/archives\/11853","title":{"rendered":"SK On signs lithium hydroxide supply deal with world\u2019s leading producer SQM"},"content":{"rendered":"

\u25a0 To secure high quality lithium hydroxide for five years starting in 2023, further strengthening its supply chain in response to the IRA<\/span><\/strong><\/p>\n

\u25a0 Partnership to discuss mid-to long-term cooperation in various fields within the battery value chain<\/span><\/strong><\/p>\n

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SK On, a global leading electric vehicle (EV) battery manufacturer, announced today it signed a lithium hydroxide supply deal with Chile\u2019s SQM, a move that will further strengthen the company\u2019s supply chain for critical battery materials in coping with the U.S. Inflation Reduction Act (IRA) following its recent deals with Australian lithium developers.<\/span><\/p>\n

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Attended by Jin Kyo-won, Chief Operating Officer at SK On, and Carlos D\u00edaz, Executive Vice President Lithium at SQM, the two companies held a signing ceremony for the lithium deal on November 4 at SK Group\u2019s headquarter Seorin building in Seoul, South Korea. <\/span><\/p>\n

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Under the deal, SK On shall purchase up to 57,000 tons of high-quality lithium hydroxide for five years starting in 2023. This amount is enough to produce batteries for approximately 1.2 million electric vehicles (EVs).<\/span><\/p>\n

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In addition to the supply deal, SK On and SQM agreed to discuss a mid-to long-term partnership to enhance their cooperative relationship, including additional lithium supply, potential investment in production plants, and waste battery recycling.<\/span><\/p>\n

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Prior to the signing ceremony, D\u00edaz and his delegation visited SK On\u2019s battery plant in Seosan, South Chungcheong Province, and toured the company\u2019s state-of-the-art manufacturing system. <\/span><\/p>\n

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The deal with SQM is expected to boost SK On\u2019s efforts to meet the IRA requirements as Chile is a free trade agreement (FTA) partner with the U.S. The IRA is a law that offers a tax credit to consumers when they buy an EV with batteries equipped with a certain percentage of critical minerals extracted or processed in the U.S. or in the countries whose FTA with the U.S. is in effect.<\/span><\/p>\n

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Established in 1968 and listed in the Santiago and New York stock exchanges, SQM is the only lithium hydroxide producer in Chile.<\/span><\/p>\n

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Through cooperation with SQM, SK On is expected to not only stably secure critical minerals, but also further enhance competitiveness in ESG (environmental, social, governance). SK On has played a leading role in establishing a sustainable battery supply chain by participating in major eco-friendly initiatives such as Global Battery Alliance and Responsible Mineral Imitative.<\/span><\/p>\n

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SQM is currently one of the lithium-producing companies with the lowest carbon and water footprint in the world and is fully committed with the environment. Consistent with that commitment, SQM joined the Initiative for Responsible Mining Assurance (IRMA) in 2020 to ensure ethical and environmentally friendly lithium mining. In accordance with IRMA standards, the Atacama site conducts independent third-party audits in areas such as worker health and safety, human rights, community engagement, and pollution control.<\/span><\/p>\n

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SK On has been steadily reinforcing its supply chain for key battery materials. Last month, it signed a lithium supply deal with Lake Resources to receive battery-grade lithium for a maximum 10 years from the fourth quarter of 2024 after acquiring 10 percent stake in the Australian firm.<\/span><\/p>\n

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In addition, SK On secured various contracts on key battery materials with global suppliers, including a memorandum of understanding (MOU) on lithium supply with Australia\u2019s Global Lithium Resources, a cobalt supply contract with Switzerland\u2019s Glencore, and an MOU with Korea\u2019s POSCO Holdings on comprehensive business cooperation in the battery business.<\/span><\/p>\n

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\u201cThe deal with SQM is a part of our business strategy to support global production expansion and proactively respond to changes in the external environment,\u201d said Jin Kyo-won, COO at SK On. \u201cSK On’s supply chain for critical minerals has been further strengthened in cooperation with SQM, which has proven excellent quality and reliability.\u201d<\/span><\/p>\n

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Carlos D\u00edaz, Executive Vice President Lithium at SQM said, \u201cWe are pleased to strengthen our business with SK On, a leading battery manufacturer which has been rapidly increasing its market share in the global battery market.\u201d He added, \u201cWe will create synergy by carrying out various cooperation in the value chain beyond the supply of lithium hydroxide to SK On.\u201d<\/span><\/p>\n

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[Photo]<\/strong><\/span><\/p>\n

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(Photo 1, 2) SQM Executive Vice President Lithium Carlos D\u00edaz and SK On Chief Operating Officer Jin Kyo-won pose for a photo after signing a lithium hydroxide supply agreement in Seoul, South Korea, on Nov. 4, 2022.<\/span><\/p>\n

 
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(Photo 3) Representatives from SK On and SQM, including SK On Chief Operating Officer Jin Kyo-won (4th from R), SQM Executive Vice President Lithium Carlos D\u00edaz (5th from R) pose for a photo after signing a lithium hydroxide supply agreement in Seoul, South Korea, on Nov. 4, 2022.<\/span><\/p>\n

 
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SK On\u2019s key material suppliers that meet the IRA requirement<\/strong><\/span><\/p>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n
Supplier<\/span><\/strong><\/td>\nCountry<\/span><\/strong><\/td>\nAnnouncement<\/b><\/span><\/span><\/td>\nDeal<\/span><\/strong><\/td>\nNote<\/span><\/strong><\/td>\n<\/tr>\n
SQM<\/span><\/td>\nChile<\/span><\/td>\nNov-22<\/span><\/td>\n57,000 tons of lithium from 2023 to 2027<\/span><\/td>\n<\/td>\n<\/tr>\n
Lake Resources<\/span><\/td>\nAustrailia<\/span><\/td>\nOct-22<\/span><\/td>\nMaximum of 230,000 tons of lithium from the fourth quarter of 2024<\/span><\/td>\nInitial five-year term with an option for an additional five years<\/span><\/td>\n<\/tr>\n
Global Lithium<\/span><\/td>\nAustralia<\/span><\/td>\nSep-22<\/span><\/td>\nMOU for a stable supply of lithium<\/span><\/td>\n<\/td>\n<\/tr>\n
Syrah<\/span><\/td>\nAustralia<\/span><\/td>\nJul-22<\/span><\/td>\nMOU for a stable supply of graphite<\/span><\/td>\nMOU with Ford and SK On<\/span><\/td>\n<\/tr>\n
POSCO Holdings<\/span><\/td>\nKorea<\/span><\/td>\nJun-22<\/span><\/td>\nJoint investment in raw materials such as lithium and nickel<\/span><\/td>\nMOU for comprehensive business cooperation<\/span><\/td>\n<\/tr>\n
Glencore<\/span><\/td>\nSwitzerland<\/span><\/td>\nDec-19<\/span><\/td>\n30,000 tons of cobalt from 2020 to 2025<\/span><\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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\u25a0 Related articles <\/strong>
\n–SK On signs MOU with Global Lithium Resources to bolster key battery materials supply chain<\/a>
\n–SK On inks lithium supply deal with Australia\u2019s Lake Resources<\/a><\/span><\/span><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u25a0 To secure high quality lithium hydroxide for five years starting in 2023, further strengthening its supply chain in response to the IRA \u25a0 Partnership to discuss mid-to long-term cooperation in various fields within the battery value chain   SK On, a global leading electric vehicle (EV) battery manufacturer, announced today it signed a lithium … Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":11864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,4,8,644],"tags":[35,1256,34,235,1255,648,1254,1253],"class_list":["post-11853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporates","category-press-room","category-press-release","category-sk-on","tag-battery","tag-chile","tag-electric-vehicles","tag-ev","tag-lithium-hydroxide","tag-sk-on","tag-sqm","tag-supply-deal"],"acf":[],"_links":{"self":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/11853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/comments?post=11853"}],"version-history":[{"count":17,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/11853\/revisions"}],"predecessor-version":[{"id":11878,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/11853\/revisions\/11878"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media\/11864"}],"wp:attachment":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media?parent=11853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/categories?post=11853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/tags?post=11853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}