SK Inc.'s (KRX:034730) battery-making unit, SK On, signed a supply deal for more lithium hydroxide with cathode materials producer EcoPro (KOSDAQ:086520) subsidiary EcoPro Innovation, which is a key raw material for electric vehicle batteries.
SK On will source up to 6,000 tons of locally produced lithium hydroxide from EcoPro Innovation by end-2025, which can power about 100,000 electric vehicles, according to the release.
The material will support operations at SK On's US plant, helping meet Inflation Reduction Act requirements and reducing reliance on Chinese imports. The two firms aim to sign a deal this year to supply more lithium hydroxide over the next two-three years, it said.
Shares of SK Inc. fell nearly 5% while those of EcoPro rose 1% at market close.
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