SK On, Collaborate with US Westwater on Anode Material Development... Responding to IRA

Nasdaq-Listed Company Holding Graphite Mining Rights
Expectations for North American Anode Material Supply

SK On has consecutively partnered with U.S. mineral development companies to collaborate on anode material development.

SK On (a battery subsidiary of SK Innovation) announced on the 3rd that it has signed a joint development agreement for battery anode materials with Westwater Resources. Under the agreement, both companies will research and develop eco-friendly, high-performance anode materials specialized for SK On batteries. Anode materials are one of the four core components of batteries. While cathode materials determine the overall capacity and voltage of the battery, anode materials store and release lithium ions coming from the cathode. This affects the battery's charging speed and lifespan.

SK On plans to apply anode materials made from graphite refined by Westwater to the batteries it is developing and jointly improve their performance. The collaboration period is three years.

If the development is successful, SK On will consider receiving anode material supplies from Westwater to be used in SK On’s battery factories in the U.S.

Westwater was established in 1977. Initially engaged in uranium-related businesses, it transformed into a battery anode material development company after acquiring a graphite company in 2018. It is also listed on the U.S. Nasdaq stock exchange.

Westwater holds exploration and mining rights for the Kusa graphite deposit spanning 17,000 hectares in Alabama, USA. It is currently investing over $200 million (approximately 268.4 billion KRW) to build a graphite refining plant near the mine. This plant, with an annual capacity of 7,500 tons, is scheduled to undergo trial operations by the end of this year and start production in the first half of 2024.

Anode materials, along with cathode materials, separators, and electrolytes, constitute the four main components of lithium-ion batteries. They determine the battery’s lifespan and charging speed. Currently, graphite is mainly used as the raw material.

Dependence on specific countries for anode materials is very high, so battery companies are focusing intensely on diversifying their supply chains. According to the “Global Electric Vehicle Battery Supply Chain” report published by the International Energy Agency (IEA) in the second half of last year, China accounts for 85% of global anode material production.

Earlier, in January, SK On also announced a joint development agreement for anode materials with Urbix, enhancing its capability to secure key battery materials locally in North America. Urbix is currently building an anode material production line with an annual capacity of about 1,000 tons in Arizona. It plans to expand production capacity to 28,500 tons annually by 2025.

Sun Hee-young, head of advanced research at SK On, said, "We will actively respond to the IRA by strengthening the local supply chain," adding, "We will continue to pursue collaboration with leading local raw material companies for this purpose."

Terence Cryan, chairman of Westwater, said, "We are very excited to collaborate with a global leading battery manufacturer," and added, "This agreement can become an option for securing natural graphite for batteries in the U.S., which will greatly benefit SK On in the future."

This content was produced with the assistance of AI translation services.