SK Innovation secures supply of cobalt from GlencoreSK Innovation said Wednesday it has signed a six-year deal with Swiss-based Glencore to secure supplies of cobalt, a key material used in EV batteries.
Under the agreement, SK Innovation will receive a total of 30,000 tons of cobalt, which is enough to make batteries for 3 million electric vehicles (EV), from Swiss-based Glencore between 2020 and 2025.
The latest deal will help SK Innovation cope with rising demand for EV batteries. The global EV battery market is expected to reach 182 trillion won ($152.7 billion) in 2025, with annual average growth of 25 percent, the company said.
SK Innovation said the global demand for cobalt in the EV battery industry is expected to reach 32,000 tons next year and grow to up to 92,000 tons in 2025.
SK Innovation and Glencore said they also agreed to receive a third-party audit every year on their cobalt supply chain for the security and human rights conditions of workers.