SEOUL (Reuters) - South Korean battery maker SK On said on Thursday it signed a memorandum of understanding with Australia's Global Lithium Resources Ltd for stable supply of lithium.
SK On will receive long-term supply of lithium ore called spodumene, and have an opportunity to secure a stake in a project pursued by Global Lithium Resources, the battery maker said without elaborating.
SK On will also explore additional business opportunities in the battery value chain, such as mining minerals with Global Lithium Resources.
Australia has a free trade agreement with the United States, which in August signed into law the Inflation Reduction Act (IRA), SK On noted.
The IRA requires a percentage of critical minerals used in electric vehicle (EV) batteries to be sourced from the United States or from an American free-trade partner.
(Reporting by Joyce Lee; Editing by Muralikumar Anantharaman & Shri Navaratnam)