SHANGHAI, Nov 16 (SMM) -Beijing Easpring Material Technology issued an announcement on November 15 stating that the company and SK had signed the "STRATEGIC COOPERATION AGREEMENT" (hereinafter referred to as the "Agreement") in Beijing and Seoul respectively. The two parties agree that SK (or its affiliates and investment entities) will participate in the investment in Easpring Material's European new material industry base, and establish a joint venture company in South Korea to jointly develop the cathode material business.
According to the announcement, SK (or its affiliates, investment entities) intends to participate in the investment and construction of Easpring Material (Europe), with an investment ratio of no more than 30%. The specific investment ratio will be negotiated and determined by both parties in the subsequent formal investment agreement.
Except for European projects, the two parties also intend to cooperate in Asian projects in order to further expand the cathode material business. According to the announcement, the two parties agreed to establish a joint venture company (hereinafter referred to as the Korean company) in South Korea by means of joint investment to develop the cathode material business. As far as the Korean company is concerned, Easpring Material intends to hold no more than 49% of the shares. SK is the controlling shareholder of the Korean company and intends to hold no less than 51% of the shares. At the same time, both parties agreed to establish a wholly-owned subsidiary in the United States directly or indirectly through South Korean company in the future to jointly expand business in the United States market. In addition, the two parties also agreed to establish a joint venture company (hereinafter referred to as the Chinese company) in China if necessary. As far as the Chinese company is concerned, Easpring Material is the controlling shareholder of the Chinese company and intends to hold no less than 51% of the shares while SK intends to hold no more than 49% of the shares. At the same time, the company and the Chinese company (if established) promise to give priority to the supply of lithium battery cathode material primary materials to the Korean company, and the Korean company promises to give priority to the company and the Chinese company (if established) to purchase lithium battery cathode material primary materials for the sake of South Korean and American markets. In addition, the two parties also agreed to cooperate in the LFP business, and the specific cooperation methods and contents will be negotiated separately in the subsequent agreement.
Easpring Material stated that the sales of NEVs in Asia, Europe, and the United States have risen sharply in recent years. The overseas markets will become the new growth engine of the global NEVs industry. The company’s comprehensive and in-depth cooperation with SK this time will enable it to further integrate into the global high-quality EVs industry chain and expand its market share in Asia, Europe and the United States.
