South Korean electric vehicle battery maker SK On said on Thursday that it will develop a new battery anode with US firm Urbix.
The pair will collaborate on the development of the anode. If the development is successful, SK On will procure the anode from Urbix and use them at its battery factories in the US.
The 2-year contract will be extended if both companies agree to continue their partnership.
Urbix, founded in 2014, has technologies related to the processing of environmentally friendly, natural graphite.
It is building a production facility in Arizona with an annual capacity of 1,000 tonnes per year and is aiming to expand this to 28,500 tonnes by 2025.
Graphite is used to produce the anode used in batteries. The performance of the anode determines the life span, energy density, and charging time of the battery.