SK Innovation Offtake/Funding Agreement, page-100

Late today AUZ explained why it remained in suspense.
It has signed an off-take agreement with the South Korea group SK Innovations, but when informed of this, the ASX compliance team requested time on Monday to check out the terms of the agreement.
As a result AUZ will recommence trade on Tuesday.
SK Innovations is part of the sprawling SK Group ( formerly Sunkyong) which began in textiles but is now one of the largest of the South Korean chaebols.
It has 96-100 subsidiaries…SK Telecommunications.. SK Chemicals etc.
In August last year SK Innovations announced the start of commercial production of a nickel dominant lithium-ion battery with plans for a battery which
could offer a 700km range. The formulation increases Ni from 60% to 80% Ni and reduced Co from and Manganese from 20% to 10%.
Currently SK supplies batteries to Mercedes, Kia and the big Chinese auto company BAIC, but in November it announced that due to increased tensions between
China and South Korea and the denial of subsidies for Chinese EV companies using Korean batteries it would switch construction of its planned new battery plant from
China to Hungary. The Hungarian plant was planned to start in February. It will supply Mercedes Benz.
Needless to say this is a strong, even stunning announcement.
AUZ avoids the risks of dealing with a Chinese SOE and indirectly will be supplying to the Daimler group.
Daimler is the world’s largest truck and bus manufacturer. China has proved that battery powered buses are economic. The runs are predictable, there is low maintenance and the torque efficiency of electric motors suits heavy buses well. There is also no diesel exhaust.
Daimler linked up or acquired several car sharing companies in the US and Europe and is following Ford in declaring that it now sees itself
as a mobility solutions company, not simply an automotive group.
Car sharing vehicles will all be EVs due to their low maintenance costs, low cost of fuel, semi-autonomous controls etc etc.
While this agreement covers funds for the development of the SCONI operation at Greenvale inland from Townsville, there is a
Implied possibility that it may/could also be extended to par or full funding of the AUZ’s Ni/Co/Sc project in NSW.
Tuesday will be huge.