SK On CEO Ji Dong-seop (left) and Yoo Byung-ok, head of Posco Holdings’ eco-friendly future materials business division, signed a memorandum of understanding on Wednesday in Seoul. (Posco Holdings)
SK On and Posco Holdings said Wednesday that they have forged a strategic partnership in a move to secure a stable ecosystem for their burgeoning battery business amid deepening worries over global supply chain disruptions.
They plan to create a working-level group to work together on global expansion, joint investment in raw materials, a road map for cathode development, expansion of anode supplies and a collection network for used batteries.
The extensive partnership comes as both firms are pouring resources into their fast-growing battery business in response to the robust demand for electric vehicles and eco-friendly mobility overall.
SK On, the battery spinoff of SK Innovation, succeeded in mass-producing the world’s first high-nickel battery that allows a longer driving range for EVs. The company is making massive investments into expanding its production capacity around the world.
Posco Holdings has also continued bolstering its expertise in battery materials. In March, the firm started construction of a lithium production plant in Argentina, while acquiring a sizable stake in Taiwanese solid-state battery maker ProLogium last month. Early this year, the firm also set up a new solid-state electrolyte production entity, called Posco JK Solid Solution.
“I expect great synergy between Posco Group’s strong capability and infra network and SK On’s technical expertise in bolstering competitiveness of the nation’s battery industry,” said SK On CEO Ji Dong-seop during the signing event. “We will ramp up efforts to elevate South Korea’s status in the global EV market.”
“I also hope that the latest partnership of Posco Group, a specialist in the field of materials business, and SK On that is fast expanding its market share in the EV battery market will play a key role for the growth of the nation’s battery industry,” said Yoo Byung-ok, head of Posco Holdings’ eco-friendly future materials business division.