SK On announced it has signed a lithium supply deal with Australia's Lake Resources, a move that will further strengthen its key battery materials supply chain in response to robust business growth and geopolitical risks. The deal could provide SK On with enough lithium to produce batteries for about 4.9 million electric vehicles (EVs). Under the agreement signed on Oct.

11, SK On anticipates the delivery of battery-grade lithium commencing as early as the fourth quarter of 2024 after acquiring a 10% stake in Lake Resources. The offtake deal has an initial five-year term with an option for additional five years. SK On would be supplied with 15,000 tons of lithium for the first two years and 25,000 tons of lithium from the third year, meaning the Korean battery maker can secure a total of 230,000 tons of lithium -- enough to produce batteries for approximately 4.9 million electric vehicles (EVs).

Established in 1997, Lake Resources currently develops four lithium brine projects in Argentina. Of them, Lake Resources will supply high-purity lithium from its flagship Kachi Project.