SK On develops anode materials with Westwater Resources

The South Korean battery cell manufacturer SK On is cooperating with the US graphite company Westwater Resources to develop anode materials for its batteries. A later supply of anode materials is also possible. (Update at the end of the article)

If the development project is successfully completed, SK On will consider sourcing anode materials from Westwater for use in its factories in the US, according to the South Korean company’s announcement. However, no key data on the development goals for the material or a timetable are given.

With anode materials from US production, SK On could, colloquially speaking, kill two birds with one stone: on the one hand, the supply chain for the existing US battery factories and those under construction could be secured, and on the other hand, SK On explicitly wants to benefit from the US government’s Inflation Reduction Act (IRA) through the partnership with Westwater.

SK On currently operates two of its own battery cell factories in the US state of Georgia. The South Korean battery producer is also building three US battery factories – two in Kentucky and one in Tennessee – as part of the BlueOval SK joint venture with Ford. A few days ago, SK On also set up a joint venture with the Hyundai Group to produce battery cells for electric vehicles in the US state of Georgia.

Westwater Resources was founded in 1977 and is headquartered in Centennial, Colorado. The company, which specialises in the development of anode materials from natural graphite, also owns the rights to explore and potentially mine the Coosa graphite deposit in Coosa County, Alabama. In the state, specifically in Kellyton, Westwater is currently building a graphite processing plant with an initial capacity of 7,500 tonnes per year.

“With this agreement, we will continue to look for options that can strengthen our materials supply chain in North America and ensure we can help meet the increasing demand for electric vehicles in the US,” said Sun Heeyoung, SK On vice president of advanced research. Terence Cryan, Executive Chairman of Westwater, added: “The JDA with SK On is another major advancement in Westwater’s graphite business, and we are extremely excited to partner with a leading global battery manufacturer. Following the passage of the Inflation Reduction Act, many battery manufacturers have sought to secure North American anode material from our Kellyton plant.”

Update 13 February 2024

SK On has concluded a conditional offtake agreement with Westwater Resources. Under the terms of the agreement, SK On can purchase a total of 34,000 tonnes of natural graphite anode material from 2027 to 2031, which will be processed by Westwater Resources in Kellyton, Alabama. SK On plans to use the material in its battery plants in the US.

skinnonews.com, skinnonews.com, westwaterresources.net (both update)