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South Korea-based SK On (SKO), a worldwide EV battery producer, signed a Memorandum of Understanding (MOU) with Australia’s World Lithium Assets to discover future enterprise alternatives collectively in regard to secure provide of lithium.
SK On ranked ninth when it comes to world EV battery market share in 2019, however has shot as much as fifth this yr. The corporate, which provides batteries to automakers together with Ford, Hyundai and Volkswagen, presently operates seven factories in the US, Hungary, China and South Korea and is presently in building of seven extra crops.
Included in 2018, World Lithium was listed on the Australian Inventory Trade final yr. It’s growing two flagship lithium property positioned in Western Australia to provide lithium from spodumene mineral.
Map of Western Australia exhibiting the situation of World Lithium’s property.
Below the phrases of the MOU, World Lithium and SKO intend to discover future enterprise alternatives together with the potential improvement of downstream built-in battery grade lithium property for an preliminary two-year interval. The MOU may even contemplate:
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SK On to probably help future World Lithium capital raisings to allow enterprise enlargement and improvement.
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Potential funding and offtake alternatives at World Lithium’s Marble Bar Lithium Undertaking within the Pilbara area and/or the Manna Lithium Undertaking within the Goldfields area.
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Potential alternatives for collaboration in electrical car (EV) and battery materials provide chains.
The time period of the MOU is 2 years until it’s prolonged or terminated earlier by mutual settlement or outdated by a definitive settlement associated to a three way partnership, partnership and/or offtake settlement.
Australia is the world’s largest lithium producer in accordance to the USGS and a significant producer of different key battery minerals akin to nickel and cobalt.
SK On has been steadily reinforcing its provide chain for key battery supplies to deal with geopolitical instability and enlargement of its world manufacturing capability. Along with the partnership with World Lithium Assets, the corporate is exploring numerous choices to safe the provision of important battery minerals in international locations like Canada, Brazil and Argentina.
In June, SK On signed an MOU with South Korea’s POSCO Holdings to strengthen collaboration throughout the complete battery worth chain, starting from secondary battery uncooked supplies to recycling. In 2019, SK On signed a provide settlement with Switzerland-based Glencore, the world’s largest provider of cobalt, to safe cobalt for six years from 2020 to 2025.
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