SK On will work with Ecopro to establish a battery recycling ecosystem.
SK On announced on the 24th that it has signed a memorandum of understanding (MOU) with Ecopro to create a battery recycling ecosystem and has concluded a supply contract for black powder. Black powder is a black powder made by crushing scrap (defective products) from secondary batteries and used batteries. It contains lithium, nickel, cobalt, and manganese and is referred to as 'the crude oil of batteries.'
SK On agreed to provide high-purity black powder based on scrap produced by its U.S. subsidiary, SK Battery America (SKBA), to Ecopro. It will supply approximately 200 tons per month for up to five years until 2029. Ecopro will use the provided black powder to produce cathode materials and then resupply them to SK Battery America.
Through this agreement, SK On strengthened its supply chain for key metal raw materials, and Ecopro effectively secured a source of supply. Furthermore, the two companies have moved a step closer to establishing a recycling ecosystem that connects 'production → discharge → collection → reproduction' in the field of used battery recycling.
Park Seok-hwa, CEO of Ecopro CNG, said, "With this contract, Ecopro and SK On have completed a cooperative business model spanning the entire secondary battery sector, from cells to cathode materials, precursors, and lithium," adding, "We plan to diversify our sources of supply based on differentiated recycling technology."
Lee Kyung-min, head of business development at SK On, noted, "We will continue to enhance the self-sufficiency of our battery supply chain while developing the capacity to respond flexibly to the rapidly changing market environment."