[Asia Economy Reporter Oh Hyung-gil] SK On is partnering with a U.S. company to develop battery anode materials. The strategy is to strengthen the North American supply chain and actively respond to the Inflation Reduction Act (IRA).
SK On announced on the 19th that it has signed a Joint Development Agreement (JDA) with the U.S. company Urbix for battery anode materials.
SK On announced on the 19th that it has signed a Joint Development Agreement (JDA) with the American company Urbix for the co-development of battery anode materials.
According to the agreement, the two companies plan to apply anode materials based on graphite refined by Urbix to batteries being developed by SK On, then jointly study and improve their performance. The collaboration period is two years and may be extended by mutual agreement.
If the development is successfully completed, SK On plans to consider sourcing anode materials from Urbix and using them in SK On's battery factories in the U.S.
Founded in 2014, Urbix possesses eco-friendly natural graphite processing technology for batteries and is building an anode material production line in Arizona with an annual capacity of about 1,000 tons. They also plan to expand to an annual capacity of 28,500 tons by 2025.
Anode materials determine battery life, energy density, and charging speed. Graphite is mainly used, but due to high dependence on China, battery companies are striving to diversify their supply chains. According to a global electric vehicle battery supply chain report published by the International Energy Agency (IEA) in the second half of last year, China accounts for 85% of global anode material production.
Cooperation with Urbix is also expected to help improve SK On's ESG (Environmental, Social, and Governance) competitiveness. Urbix does not use hydrofluoric acid or hydrochloric acid in the refining process and recycles 70% of its chemicals.
Sun Hee-young, head of advanced research at SK On, said, "We are reviewing various measures, including this agreement, to secure raw materials," adding, "We will turn the IRA into an opportunity through supply chain diversification."
Nico Cuevas, CEO of Urbix, said, "Through cooperation with a global battery manufacturer, we can strengthen our production capacity," and added, "We will help build battery critical mineral supply chains in both Korea and the U.S."
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