SK On has signed a contract with POSCO-Pilbara Lithium Solution to secure the supply of lithium hydroxide. The agreement covers the supply of up to 15,000 tons of high-purity lithium hydroxide over a period of three years with an option to extend for a further 36 months. The material will be produced in South Korea and is a key component of SK Onʼs NCM cathode material.
Expansion of raw material supply in South Korea
POSCO-Pilbara Lithium Solution is a joint venture by POSCO Holdings and Australian mining company Pilbara Minerals. It uses lithium podium from Pilbara Mineralsʼ Australian mines. The material is processed into lithium hydroxide at a plant in Gwangyang, South Korea, from where it will be supplied to SK On. Through this partnership, SK On is expanding its raw material sources beyond China. The company expects shorter delivery times as well as lower logistics and storage costs as a result of local sourcing. The agreement is also intended to strengthen the companyʼs bargaining position in the procurement of raw materials.
