SL Bionics "Rising Lithium Prices Signal New Business Opportunities for Lithium Raw Material Vendors"

[Asia Economy Reporter Jang Hyowon] SL Bionics announced on the 25th that the company’s business structure is showing a positive outlook as the price of lithium, known as white petroleum, has increased tenfold over the past two years.

The company secured Yahoo Group as a client through AVC for the first time in Korea and succeeded in signing an exclusive lithium sales and distribution contract. It plans to enter the raw material vendor business targeting domestic battery companies.

The price of lithium, a key raw material for electric vehicle batteries, is soaring. It is analyzed that the surge in demand for electric vehicle batteries has outpaced lithium supply, and the U.S. Inflation Reduction Act (IRA) has also had an impact.

According to the Korea Mining and Resources Corporation, on the 17th, the price of Chinese lithium carbonate reached a record high of 525,500 yuan (approximately 103 million KRW) per ton (t). In January last year, it was only 48,500 yuan per ton, soaring more than tenfold in less than two years.

An SL Bionics official said, “Based on the high demand for lithium raw materials from domestic battery companies, we will develop the battery material vendor business to create new sales and secure financial soundness, dedicating our capabilities to enable the company’s growth.”

He added, “We will implement a supply chain diversification strategy to meet demand and expand the new secondary battery material business.”