SK On signed a lithium hydroxide supply agreement with EcoPro Innovation on Wednesday, ramping up efforts to strengthen its domestic EV battery supply chain in line with the US Inflation Reduction Act requirements.
Under the deal, SK On will receive up to 6,000 metric tons of domestically produced lithium hydroxide by the end of this year, enough to power approximately 100,000 electric vehicles. The lithium will be processed through domestic cathode plants before being shipped to SK On’s US battery facilities.
Lithium hydroxide, a critical ingredient in nickel-cobalt-manganese cathodes, has traditionally been sourced from overseas, mostly from China. By securing domestic materials, SK On aims to enhance price competitiveness and reduce geopolitical risk. Notably, Korean-made lithium hydroxide qualifies under the IRA’s Advanced Manufacturing Production Credit, helping SK On secure tax credits and improve cost efficiency in the US market.
EcoPro Innovation CEO Kim Yoon-tae said the deal marks their first lithium hydroxide supply to a global battery maker and will help expand their presence in North America and Europe.
“We’re building a stable supply chain amid shifting global policies,” said Park Jong-jin, head of strategic purchasing at SK On. “Securing competitive materials and diversifying partners will boost our North American capabilities.”
hyelimchung@heraldcorp.com
