SK Innovation said on Thursday that it has signed a deal worth 10.11 trillion won with EcoPro BM to procure battery cathode.
The pair will also collaborate in the development of cathode material and battery recycling.
TheElec was the first to report on July 20 that EcoPro BM and SK Innovation was in talks for a battery material supply deal worth trillions of wons.
The pair’s contract will last from 2024 to 2026. The new deal is an addition to their existing deal.
In February last year, SK Innovation had said it will procure 2.7 trillion won worth of high-nickel NCM cathode from EcoPro BM up to 2023.
High portions of nickel on the cathode can extend the traveling distance per charge of electric vehicles.
SK Innovation currently has remaining orders for batteries worth 130 trillion won.
The South Korean energy company is aiming for a production capacity of 85GWh in 2023 and over 200GWh in 2025.
EcoPro BM is planning to supply the cathodes to SK Innovation with its CAM5 factory, which is currently operational, and CAM5-N, which it is currently building that will start production next year.
The two factories combined will be able to supply 48,000 metric tonnes of cathode a year.
Meanwhile, in their latest agreement, SK Innovation and EcoPro also agreed to strengthen collaboration in battery recycling.
SK Innovation is planning to build a battery recycling factory abroad sometime after this year.