Australia’s Lake Resources to Supply Argentinian Lithium to South Korea’s SK
- October 12, 2022
- Posted by: Quatro Strategies
- Category: Mining
Australian miner Lake Resources announced on Wednesday it signed a deal with South Korean battery maker SK On to supply lithium from its flagship Kachi project in Argentina. As part of the agreement, SK On, a unit of SK Innovation, will acquire a 10% stake from Lake Resources. SK Innovation is a part of South Korea’s second-largest conglomerate SK Group.
Amid a global effort for energy transition, automakers and battery manufacturers have been inking deals with Australian miners for lithium supply.
Lake Resources said it would supply 25,000 tonnes per annum (tpa) of lithium to SK On under the five-year deal, which could be extended for another five years.
The South Korean battery maker supplies products to automakers such as Ford and Hyundai. The company is on track for a breakeven in the fourth quarter thanks to improved market conditions.
SK On believes the agreement will allow it to secure a stable lithium supplier for its U.S. supply chain.
Last month, Lake Resources said operations at its Kachi project were proceeding, after a dispute with Bill Gates-backed Lilac Solutions over certain performance milestones to get a 25% stake in the project.
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