Global Lithium Resources Limited (ASX: GL1) has signed a Non-Binding Memorandum of Understanding (MOU) with leading Korean battery manufacturer SK On Co., Ltd (SKO) to explore a range of future business opportunities.
SKO is one of the fastest-growing battery manufacturers in the industry, with battery production facilities operating in countries including the U.S., China, Hungary and Korea. SKO supplies batteries to global automakers, including Ford Motor Company, Hyundai Motor Company and Volkswagen.
SKO, an affiliate of Korea’s second-largest conglomerate SK Group, has a strong order backlog of 1,600GWh as of 2021
Under the terms of the MOU, Global Lithium and SKO intend to explore future business opportunities including the potential development of downstream integrated battery grade lithium assets for an initial two-year period. The MOU will also consider:
• SK On to potentially support future Global Lithium capital raisings to enable business expansion and development.
• Potential investment and offtake opportunities at Global Lithium’s Marble Bar Lithium Project in the Pilbara region and/or the Manna Lithium Project in the Goldfields region.
• Potential opportunities for collaboration in electric vehicle (EV) and battery material supply chains. The term of the MOU is two years unless it is extended or terminated earlier by mutual agreement or superseded by a definitive agreement related to a joint venture, partnership and/or offtake agreement.
“I am extremely excited that Global Lithium has signed a MOU with Korea’s SK On, a leading manufacturer of lithium-ion batteries for the automotive industry on a global scale,” Global Lithium Managing Director, Ron Mitchell, said.
“The scope of this partnership has the potential to strengthen and diversify the future of Global Lithium’s projects in Western Australia both in the near term and in the years ahead.
Evaluating downstream processing partnerships is a significant part of GL1’s step-change growth strategy and the company will continue to build on a range of advanced discussions around the globe.
“The lithium and EV markets have experienced significant growth over the past two years and this expansion is only set to accelerate as demand for lithium-ion batteries increases. A partnership such as this will help position Global Lithium to be a key supplier of lithium to aid the continued sustainable development of the industry.”
SKO Vice President, Jinsuk Ryu, said Global Lithium will strategically support SKO’s global production and mutually explore potential business opportunities.
“Through this MOU, I strongly believe that both parties will support each other to accelerate the growth of business and cooperate further to explore potential opportunities in the EV supply chain.”
For further information please visit: https://globallithium.com.au/