(Kitco News) - Global Lithium Resources (ASX: GL1) announced today that it has signed a non-binding memorandum of understanding (MOU) with leading Korean battery manufacturer SK On Co. (SKO) to explore a range of future business opportunities.
The company said that under the terms of the MOU, Global Lithium and SKO intend to explore future business opportunities including the potential development of downstream integrated battery grade lithium assets for an initial two-year period.
The MOU will also consider SK On to potentially support future Global Lithium capital raisings to enable business expansion and development; potential investment and offtake opportunities at Global Lithium's lithium projects; and potential opportunities for collaboration in electric vehicle and battery material supply chains.
According to a press-release, the term of the MOU is two years unless it is extended or terminated earlier by mutual agreement or superseded by a definitive agreement related to a joint venture, partnership and/or offtake agreement.
Managing Director Ron Mitchell commented, "I am extremely excited that Global Lithium has signed a MOU with Korea's SK On, a leading manufacturer of lithium-ion batteries for the automotive industry on a global scale. The scope of this partnership has the potential to strengthen and diversify the future of Global Lithium's projects in Western Australia both in the near term and in the years ahead."
SKO is one of the fastest-growing battery manufacturers in the industry, with battery production facilities operating in countries including the U.S., China, Hungary and Korea. SKO supplies batteries to global automakers, including Ford Motor Company, Hyundai Motor Company and Volkswagen.
Global Lithium Resources is a diversified West Australian focused mining exploration company with multiple assets in key lithium branded jurisdictions with a primary focus on the 100%-owned Marble Bar lithium project in the Pilbara region and the 80%-interest in the Manna lithium project in the Goldfields, Western Australia.
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