SK Innovation is planning to increase the amount of cathode used in battery production that it manufacture on its own instead of getting them from suppliers.
The South Korean energy firm is hoping up to 20% of the total cathode it uses its procured by itself in the mid- to long-term, people familiar with the matter said.
This goal is expected to be met around 2025, they said. SK Innovation is hoping to manufacture high-nickel cathode on its own.
Currently, the conglomerate relies completely on suppliers to get cathode.
SK Innovation decided to procure its own to protect its own technology and to secure stability of the materials.
EcoPro BM currently supplies the company with NCM811 (nickel, cobalt and manganese in 8 to 1 to 1 ratio) cathode.
L&F has also signed a NCM cathode supply deal worth 1.217 trillion won with SK Innovation, but it will be supplying NCM523. SK Innovation is planning to mix L&F’s cathode with high-nickel cathode called CSG it procures for EcoPro BM.
SK Innovation has already shared its goal to makes its own cathode with its suppliers, the people said.
This doesn’t mean suppliers will see less orders from SK Innovation in the short-term. The South Korean battery maker’s remaining orders for batteries stands at 550GWh (worth over 70 trillion won) as of last year.