SL Bionics Secures New Growth Engine Through Domestic Distribution and Sales of Lithium Hydroxide

[Asia Economy Reporter Jang Hyowon] SL Bionics announced on the 21st that it has signed a supply contract for lithium hydroxide with ‘AVC,’ a partner company of China’s largest lithium company ‘Ganfeng Lithium,’ accelerating its new business in the sales and distribution of electric vehicle battery materials.

This contract signing is the second news following the agreement in August to receive an annual supply of 6,000 tons of lithium hydroxide from China’s Yahua Group through AVC. The company is aggressively securing lithium hydroxide to stably promote the sales business of electric vehicle battery materials targeting domestic battery companies.

Before receiving the official quantity, the company has completed a contract to first supply an initial quantity of 10 tons for domestic market testing, which is expected to be delivered domestically by the end of this month.

Ganfeng Lithium, established in 2000, is China’s largest lithium mining and processing company, accelerating the expansion of its own battery manufacturing business through subsidiaries Ganfeng Lidian and Ganfeng Xinliyuan. In the first quarter, it showed a remarkable growth with sales tripling year-on-year to 5.4 billion yuan (1.0731 trillion KRW) and operating profit increasing eightfold to 4 billion yuan (794.9 billion KRW), approaching the world’s number one sales position.

Currently, the production capacity of the three domestic battery companies is 32GWh, whereas Ganfeng Lithium is expected to secure a production capacity of 65GWh by 2025. Accordingly, domestic dependence on Ganfeng Lithium, which has price competitiveness and production capacity, is expected to increase further. Major customers include Tesla and LG Chem.

An SL Bionics official said, “Starting with this contract signing, we have established a system to stably secure key raw materials that are essential for many products from electric vehicles to smartphones,” adding, “As lithium prices surge globally, we will continuously strive to become a game changer in the lithium distribution and sales market by collaborating with domestic battery companies facing supply difficulties.”

He added, “Leveraging the production capabilities of Woosung Street, an eco-friendly fuel oil production company recently merged, we will secure stable sales and do our best to develop the company and enhance shareholder value.”