SK On, the South Korean energy and chemical company, and POSCO Holdings, the South Korean steelmaking giant, have reportedly inked a strategic partnership deal to establish a stable ecosystem for their up and coming battery business amidst growing concerns around global supply chain disruptions.
As per repots, the two firms intend to establish a working-level group to collaborate towards global expansion, joint raw material related investments, a roadmap for developing cathodes, a network for collecting used batteries, and anode supply expansion.
Looking at the strong demand for EVs or electric vehicles, and environmentally friendly mobility in general, both companies are investing heavily in their quickly expanding battery sector.
SK On, a battery subsidiary of SK Innovation, proved successful in mass-producing the first high-nickel battery in the world, allowing EVs to travel farther. The business is heavily investing in increasing its global production capacity.
Posco Holdings has also kept expanding its knowledge of battery components. The company began building a lithium production facility in Argentina in March and this month bought a sizeable share in Taiwanese solid-state battery manufacturer ProLogium.
During the first half of the year, the company also established Posco JK Solid Solution, a novel solid electrolyte production entity.
At the signing event, Ji Dong-seop, CEO of SK On, stated that he expects there to be excellent synergy between Posco Group's proven knowledge as well as infra network and technical expertise of SK On in enhancing the competitiveness of the country's battery industry. SK On will work harder to improve South Korea's standing in the international EV market.
According to Yoo Byung-ok, head of Posco Holdings' eco-friendly future materials business arm, the latest partnership deal of Posco Group, an expert in the materials business, as well as SK On, which is rapidly growing its market share in the electric vehicle battery market, will hopefully play an important role for the expansion of the country's battery sector.