SK Innovation has signed a deal to secure a key material used for high-capacity electric vehicle batteries, industry sources said on April 2.

According to the sources, SK Innovation has signed the deal to secure lithium hydroxide from Australia-based Tianqi Lithium Kwinana, which is an affiliate of the China-based Tianqi Lithium, the world’s No. 3 producer of the metal used in EV batteries.

Under the deal, SK Innovation will be supplied an estimated 50,000 tons of lithium hydroxide starting from July 1, 2019, to 2024, according to the sources.

“The deal was actually signed in December,” an SK Innovation official said. 

“The deal will allow us to secure a stable supply of key EV battery material.”

Meanwhile, its larger local rival LG Chem also signed a five-year deal in July last year with Nemaska Lithium, a Canadian supplier of lithium hydroxide, a key material in making electric vehicle batteries.

By Ram Garikipati and newswires (ram@heraldcorp.com)