South Korean battery manufacturer SK on Co. has announced a partnership with German chemical company BASF SE in a bid to strengthen its competitiveness in the global electric vehicle battery market.

On Wednesday, SK on revealed its intention to seek collaboration with BASF specifically in the realm of cathode materials, which play a pivotal role in determining battery performance and constitute 40 percent of the total battery cell cost. Both companies aim to initially focus on the North American and Asian markets to align with the requirements of the U.S. Inflation Reduction Act (IRA).

The collaboration also aims to leverage BASF’s expertise in raw material-related technologies while BASF seeks to bolster its competitiveness in the battery market while securing customers.

The companies also intend to explore opportunities in battery recycling, seeking to develop sustainable practices within the battery production and disposal cycle.

By Song Min-geun and Minu Kim

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