Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS) = SK On has signed a contract with EcoProInnovation to supply domestically produced lithium hydroxide, raising expectations by expanding its battery business in North America and preemptively responding to the US Inflation Reduction Act(IRA).

A company official said, “We have established a stable supply base for raw materials by diversifying domestic suppliers,” adding, “It will help us meet the IRA tax deduction requirements and improve cost competitiveness by reducing transportation costs.”

Under this contract, SK On will receive up to 6,000 tons of lithium hydroxide by the end of this year and supply it to the U.S. plant via the domestic cathode material plant. As this is the second domestic supplier secured following POSCO Pilbara Lithium Solution last year, additional volume contracts for the next 2-3 years are also being reviewed.

EcoProInnovation has been mass producing lithium hydroxide since 2021 and plans to establish a production system of up to 79,000 tons per year in Korea, the United States, and other countries by 2028.

By Soon-ki Lee(s8789@nspna.com) and Arang Choe(arang2466@nspna.com)

ⓒNSP News Agency·NSP TV. All rights reserved. Prohibits using to train AI models.