South Korean battery manufacturer SK On has signed a supply agreement with EcoPro Innovation for lithium hydroxide. The agreement aims to strengthen the supply chain in the United States in line with the provisions of the Inflation Reduction Act. Under the agreement, SK On will receive up to 6,000 tons of lithium hydroxide by the end of 2025. The material will be processed in Korea and used in U.S. battery plants.
Supplied U.S. plants produce NCM cathode batteries
Due to the lithium hydroxide being produced in Korea, it is eligible for subsidies under U.S. regulations, enabling SK On to reap tax benefits. This will not only reduce costs, but also reduce dependence on imports, especially from China. The U.S. plants produce batteries with nickel-cobalt-manganese (NCM) cathodes, for which lithium hydroxide is a key raw material. According to SK On, the agreed-upon quantity of lithium hydroxide is sufficient for approximately 100,000 electric vehicles. EcoPro already supplies other South Korean cell manufacturers and aims to expand its customer base.
