SK On secures three-year lithium supply from Posco
SK On has announced that the lithium concentrate supplied by Posco will be used for battery-electric vehicle (BEV) battery projects in Europe and North America, as well as for stationary energy storage systems. According to Korean media, the battery manufacturer is aiming to reduce its raw material supply chain’s dependence on China through this agreement. This move aligns with growing political initiatives in the EU and North America to diversify supply chains, alongside demands from automotive manufacturers to minimise reliance on Chinese raw materials in battery production.The lithium is sourced from Posco Argentina’s salt lake mines in the Hombre Muerto region. The recently signed contract between Posco and SK On is reportedly the largest since the lithium production facility in the region became operational in 2024. “This agreement is part of our supply chain diversification strategy to strengthen mid- to long-term raw material stability and sourcing competitiveness,” states Park Jong-jin, Head of Strategic Procurement at SK On. He added: “We will also continue to expand SK On’s raw material sourcing capabilities beyond EVs and into the energy storage system (ESS) sector.”As early as 2024, SK On signed a three-year contract with Posco Pilbara Lithium Solution. This agreement provided for the supply of up to 15,000 tonnes of lithium hydroxide for NCM cathodes. While the final processing step takes place in South Korea, the raw material itself is mined in Australia. Posco Pilbara Lithium Solution is a joint venture established in 2021 between Posco and the Australian mining company Pilbara Minerals, holding 82% and 18% of the shares, respectively.just-auto.com, en.yna.co.kr, koreaherald.com, businesskorea.co.kr
