SK On Taps Posco for Up to 105,000 Tonnes of Lithium Hydroxide Over Seven Years
SK On has signed a seven-year offtake agreement with Posco to secure up to 105,000 tonnes of battery-grade lithium hydroxide for its EV battery plants through 2033. The contract underpins SK On’s supply chain for North American and European operations and bolsters Posco’s lithium sales pipeline.
1. Deal Overview
SK On has entered a seven-year offtake agreement with Posco to source battery-grade lithium hydroxide, marking a strategic partnership to secure a steady raw material supply for electric vehicle battery production.
2. Contract Scope
Under the contract, SK On will purchase up to 105,000 tonnes of lithium hydroxide through 2033, with deliveries allocated to its North American and European battery manufacturing facilities.
3. Strategic Impact
The agreement reinforces SK On’s supply chain resilience and supports Posco’s goal to expand its lithium sales pipeline, potentially boosting its EV material revenue by capturing growing demand for battery inputs.