SK On Secures 34,000 Tons of Key Battery Material Natural Graphite in the U.S.

SK On announced on the 12th that it has signed a natural graphite supply contract with its U.S. anode material partner Westwater Resources (hereinafter Westwater).

Westwater will supply natural graphite produced at its refining plant located in Cullman, Alabama, from 2027 to 2031 to SK On's U.S. factory.

This is a 'conditional off-take' contract where SK On will purchase the material at a pre-agreed price if the developing material meets certain conditions. Depending on the growth speed of the North American electrification market, SK On can purchase up to 34,000 tons within the contract period.

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The two companies have further expanded their partnership following the battery anode material joint development agreement signed in May last year. Westwater, which transformed into a battery anode material developer after acquiring a graphite company in 2018, holds exploration and mining rights for the 17,000-hectare Kusa graphite deposit in Alabama. Currently, it is constructing a graphite refining plant near the mine with an annual production capacity of 7,500 tons, aiming for mass production this year.

SK On explained that this contract expands cooperation to include the purchase of natural graphite, a raw material for anode materials, and expects its capability to respond to the IRA to grow further.

According to the IRA, from 2025, if key minerals used in batteries are sourced from Foreign Entities of Concern (FEOC), electric vehicle subsidies in the U.S. will not be available.

In the case of graphite, a core material for anode materials, the global supply chain currently depends on Chinese companies designated as FEOC. Therefore, the battery industry is requesting a minimum two-year exemption of FEOC application on graphite until the end of 2026 to secure new technologies and supply sources.

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