SK On and Ecopro Join Forces on "Black Powder" to Build a Battery Circular Ecosystem

Supplying High-Purity Black Powder from U.S. Production Scrap
Ecopro to Reproduce Cathode Materials in Pohang and Resupply
Securing Key Raw Materials and Expanding Global Recycling

SK On and Ecopro are accelerating the establishment of a battery circular ecosystem through battery recycling.

On August 22, SK On announced that it had signed the "Battery Circular Ecosystem Business Agreement" and the "Black Powder Supply Contract" with Ecopro at Ecopro's Seoul office in Seocho-gu, Seoul. Black powder is a black powder obtained by crushing secondary battery scrap (defective products) and used batteries. It is called the "crude oil of batteries" because it is rich in key metals such as lithium, nickel, cobalt, and manganese. The signing ceremony was attended by Kyungmin Lee, Head of Business Development at SK On; Seokhoe Park, CEO of Ecopro CNG; and Hoerim Jeong, Head of Business Strategy at Ecopro.

Kyungmin Lee, Head of Business Development at SK On (left), and Seokhoe Park, CEO of Ecopro CNG (right), signed the "Battery Circular Ecosystem Business Agreement" and the "Black Powder Supply Contract" at Ecopro's Seoul office in Seocho-gu, Seoul, on the 22nd.

Under the contract, SK On will supply Ecopro with high-purity, scrap-based black powder generated at its U.S. production subsidiary SK Battery America (SKBA) in Georgia. The supply volume is about 200 tons per month, and the contract period is up to five years, from this year through 2029. Ecopro CNG, which is responsible for Ecopro Group's battery recycling business, will use this black powder to produce cathode materials in Pohang, which will then be supplied back to SKBA.

Through this arrangement, SK On will be able to stably secure key metals by recycling process scrap, while Ecopro will expand its raw material sourcing not only domestically but also to the United States. With this collaboration, the two companies will fully implement a closed-loop battery recycling system encompassing production, emission, collection, and reproduction. Furthermore, they plan to solidify the battery recycling value chain by expanding globally and diversifying materials.

Kyungmin Lee, Head of Business Development at SK On, said, "In the era of electric vehicles, a circular ecosystem recycling model is essential for corporate competitiveness. We will continue to strengthen our self-sufficiency in the supply chain and build an organization capable of responding to rapidly changing market conditions."

Seokhoe Park, CEO of Ecopro CNG, stated, "With this long-term supply contract, the two companies have completed a collaborative model spanning cells, cathode materials, precursors, and lithium. Based on our differentiated recycling technology, we will continue to diversify our raw material supply chain."