SK On orders lithium from Posco
As SK On emphasises in the press release, this is lithium hydroxide produced in South Korea. However, only the final processing step takes place in South Korea; the raw material is mined in Australia. Posco Pilbara Lithium Solution is a joint venture founded in 2021 between Posco and the Australian mining company Pilbara Minerals, which hold 82 and 18 per cent of the shares, respectively.
At its plant in Gwangyang, South Korea, Posco Pilbara Lithium Solution processes lithium spodumene into battery-grade lithium hydroxide, which Pilbara Minerals has mined at its Pilgangoora mine in Western Australia – the mine has a capacity of around 680,000 tonnes per year. Posco has held a stake in the Australian company since 2018 and has signed a 20-year supply agreement for lithium podumen.
Until now, SK On has mainly sourced its lithium hydroxide for its domestic plants from China. Since November 2022, there has also been a lithium supply contract with SQM from Chile. SK On is also the launch customer for ExxonMobil’s lithium production planned from 2027 in Arkansas, USA. With the Psoco deal, SK On aims to “its negotiation leverage for raw material procurement,” shorten lead times and reduce logistics costs.
“We are committed to strengthening our collaboration with leading global raw material companies to quickly adapt to changing market demands,” said Park Jong-jin, Head of SK On’s Strategic Procurement Office. “By diversifying our supply sources, we aim to further enhance our procurement competitiveness.”
Lee Kyung-sub, CEO of Posco Pilbara Lithium Solution, commented: “This agreement is significant as it recognises the competitiveness of POSCO Group’s lithium business by a leading global battery company. We will continue our efforts to advance South Korea’s secondary battery material industry and secure national competitiveness in eco-friendly future materials.”
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