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Samsung SDI seals lithium deal with EcoPro Innovation

Published: 11 Jun. 2024, 14:31

SARAH CHEA
[email protected]

EcoPro Innovation headquarters in Pohang, North Gyeongsang [ECOPRO INNOVATION]

Samsung SDI inked a lithium deal with EcoPro Innovation to source 154,000 tons of lithium hydroxide, a critical material in EV battery manufacturing, through 2033.

Under the 10-year deal, the compound will be shipped to Samsung SDI's plants both at home and in Hungary. EcoPro Innovation is a lithium maker 96 percent owned by EcoPro, which also owns EcoPro BM, a cathode producer.

Lithium hydroxide is a critical ingredient in cathode production, responsible for 40 percent of a battery's cost.

In 2021, EcoPro Innovation became the first domestic company to successfully produce lithium hydroxide for secondary batteries by refining lithium.

Last year, Samsung SDI closed a $34 billion deal with EcoPro BM to supply cathodes for five years from 2024.

EcoPro Innovation is currently building a factory in Hungary that will be completed at the end of the year, and is considering building a third factory in Pohang, North Gyeongsang.

EcoPro's lithium hydroxide capacity will grow to 79,000 tons by 2028.

BY SARAH CHEA [[email protected]]