South Korean battery maker SK On announced on Thursday it signed a memorandum of understanding (MoU) with Australia’s Global Lithium Resources for lithium supplies. Under the agreement, SK On will receive long term supply of spodumene, a lithium ore, and have an opportunity to secure a stake in a project pursued by Global Lithium Resources. The South Korean battery maker will also explore business opportunities in the battery value chain, such as mining minerals with Global Lithium Resources.

SK On underlined that Australia has a free trade agreement with the United States, which in August signed into law the Inflation Reduction Act (IRA), which requires electric vehicle (EV) battery components to be sourced from the United States or from a U.S. free-trade partner.

Under the terms of the MOU, Global Lithium and SKO intend to explore future business opportunities including the potential development of downstream integrated battery grade lithium assets for an initial two-year period. The MOU will also consider:

• SK On to potentially support future Global Lithium capital raisings to enable business expansion and development.
• Potential investment and offtake opportunities at Global Lithium’s Marble Bar Lithium Project in the Pilbara region and/or the Manna Lithium Project in the Goldfields region.
• Potential opportunities for collaboration in electric vehicle (EV) and battery material supply chains.

The term of the MOU is two years unless it is extended or terminated earlier by mutual agreement or superseded by a definitive agreement related to a joint venture, partnership and/or offtake agreement.

Global Lithium Resources is a diversified West Australian focused mining exploration company with multiple assets in key lithium branded jurisdictions with a primary focus on the 100%-owned Marble Bar Lithium Project (MBLP) in the Pilbara region and the 80%-interest in the Manna Lithium Project in the Goldfields, Western Australia.

Global Lithium has now defined a total Inferred Mineral Resource of 18.4Mt @ 1.06% Li2O at its MBLP and Manna Lithium projects, confirming Global Lithium as a new lithium player in Western Australia, on which it will progress exploration during 2022.

Global Lithium’s major shareholders include Suzhou TA&A Ultra Clean Technology, a controlling shareholder of Yibin Tianyi Lithium, a joint venture between Suzhou TA&A (75%) and CATL (25%), the world’s largest EV battery producer, and ASX listed Mineral Resources Limited.