Australia's Lake Resources to supply lithium to S. Korean battery maker (updated)

Lake Resources NL

12/10/2022 03:49

(Adds deal details, background)
       Oct 12 (Reuters) - Australia's Lake Resources  LKE.AX 
said on Wednesday it had signed a deal with South Korean battery
maker SK On Co Ltd to supply lithium from its flagship Kachi
project in Argentina.
    SK On, a unit of SK Innovation  096770.KS , will acquire a
10% stake in New South Wales-based lithium developer Lake
Resources as part of the agreement. SK Innovation is a part of
South Korea's second-largest conglomerate SK Group.
    Automobile and battery makers have been signing deals with
Australian miners for supply of lithium, a key ingredient in
electric vehicle batteries, amid a global push towards cleaner
sources of energy.
    Lake Resources said it would supply 25,000 tonnes per annum
(tpa) of lithium to SK On under the five-year deal, which could
be extended for another five years.
    SK, which supplies batteries to the likes of Ford Motor Co
 F.N  and Hyundai Motor Co  005380.KS , is on track to break
even in the fourth quarter, aided by improved market conditions.
 urn:newsml:reuters.com:*:nL1N2ZA00U
    The agreement allows SK On to secure a stable lithium
supplier for its U.S. supply chain, said Jinsuk Ryu, SK On's
vice president.
    Last month, Lake Resources said operations at its Kachi
project were proceeding, after a dispute with Bill Gates-backed
Lilac Solutions over certain performance milestones to get a 25%
stake in the project.   
 (Reporting by Jaskiran Singh in Bengaluru; Editing by
Subhranshu Sahu)
 ((Jaskiran.Singh@thomsonreuters.com;))