SK on teams up with U.S. Westwater Resources to develop anode materials

SK on Co. and Westwater Resources Inc. logos [Courtesy of each company]

SK on Co., a pure-play battery maker under South Korea’s SK Group, is enhancing its supply chain in the U.S. in response to Washington’s enforcement of the Inflation Reduction Act (IRA) by expanding its partnership with local mineral resources companies in anode materials development.

SK on said on Wednesday that it signed an agreement with U.S. mineral resources company Westwater Resources Inc. to jointly develop anode materials used in batteries.

Under the agreement, the two companies will develop eco-friendly, high-performance anode materials tailored for SK on batteries. They plan to work together to improve battery performance and apply anode materials made of graphite refined by Westwater Resources to batteries being developed by SK on.

The partnership will last for three years. SK on plans to consider injecting anode materials supplied by Westwater Resources to its U.S. battery plant.

“The joint development agreement with SK on is another major advancement in Westwater’s graphite business, and we are extremely excited to partner with a leading global battery manufacturer,” said Terence Cryan, executive chairman of Westerwater Resources.

“Following the passage of the IRA, many battery manufacturers have sought to secure North American anode material from our Kellyton plant.”

Westwater Resources, established in 1977, is a Nasdaq-listed U.S. mineral resources company that originally engaged in uranium-related business.

The company acquired a graphite company in 2018 and transformed itself into a battery anode materials developer.

Westerwater Resources owns the exploration and mining rights of a 17,000-hectare graphite mine in Coosa County in Alabama. It is investing more than $200 million near the mine to build a graphite processing plant with an annual capacity of 7,500 metric tons.

The plant is expected to begin production in the first half of 2024 after trial operations at the end of this year.

“SK on has been pursuing strategic partnerships to secure high-quality battery raw materials to support our growing U.S. manufacturing base,” said Sun Hee-young, vice president in charge of advanced research at SK on.

“With this agreement, we will continue to look for options that can strengthen our materials supply chain in North America and ensure we can help meet the increasing demand for electric vehicles in the U.S.”

Anode materials are one of the main components in lithium-ion batteries that determine the lifespan and charging speed. Currently, graphite is the main material for anode materials.

According to data from the International Energy Agency (IEA), China accounts for 85 percent of the world’s anode production, which is pushing battery makers to diversify their anode material supply chains.

In January, SK on announced that it will jointly develop anode materials with another U.S. graphite company, Urbix Inc. to enhance its capacity to secure key battery materials in North America.

Urbix is currently building anode material production facilities with a capacity of about 1,000 tons per year in Arizona. It is also seeking an expansion of its production to 28,500 tons per year by 2025.