SK On Strikes Lithium Deal to Power 100,000 U.S. Electric Vehicles!

SK On signed a lithium hydroxide supply agreement with EcoPro Innovation on Wednesday, ramping up efforts to strengthen its domestic EV battery supply chain in line with the US Inflation Reduction Act requirements.

The deal secures SK On up to 6,000 metric tons of domestically produced lithium hydroxide by year-end, enough to power roughly 100,000 electric vehicles. This lithium will be processed at domestic cathode plants before being shipped to SK On’s US battery facilities.

Lithium hydroxide, a key ingredient in nickel-cobalt-manganese cathodes, has typically been sourced from overseas, primarily China. By securing domestic materials, SK On aims to boost price competitiveness and reduce geopolitical risk. Importantly, Korean-made lithium hydroxide qualifies under the IRA’s Advanced Manufacturing Production Credit, enabling SK On to secure tax credits and improve cost efficiency in the US market.

EcoPro Innovation CEO Kim Yoon-tae stated that this agreement marks their first lithium hydroxide supply to a global battery manufacturer and will help expand their presence in North America and Europe.

“We’re building a resilient supply chain in response to evolving global policies,” said Park Jong-jin, head of strategic purchasing at SK On. “Securing competitive materials and diversifying our partnerships will strengthen our position in North America.”