The cathode joint venture between EcoPro BM, SK On, and Ford will set up their factory in the US.
The factory will produce precursors used to produce cathode, the core material used to manufacture electric vehicle batteries. The move is a response to the US Inflation Reduction Act.
In an investor relations event on Thursday, EcoPro, the parent company of cathode maker EcoPro BM, said it plans to use its precursor production capability to expand in the US market.
The company also plans to recycle used batteries and extract nickel, cobalt, and lithium from them.
The used batteries will be provided by Blue Oval SK, the battery joint venture between SK On and Ford. The recycling of these batteries will be done by a local company in the US.
The US-based factory will import lithium carbonate and lithium hydroxide from countries that have signed free trade agreements with the US, EcoPro also said.
EcoPro will also likely use scrubs left over from Blue Oval SK’s battery production lines to make the precursors.
These precursors will be delivered to the cathode-producing production line in the US.
Meanwhile, EcoPro also said it plans to procure around 30% of the nickel, precursor, and lithium use on its own by 2027.