An agreement for battery materials developer Australian Mines Ltd to supply cobalt and nickel to South Korean battery maker SK Innovation Co Ltd collapsed on Friday with the companies blaming each other for not meeting agreed terms.
Under initial terms agreed in October, SK Innovation was required to issue a letter of finance to Australian Mines which it has not done, leading to the agreement being automatically terminated, Australian Mines said in a statement.
An SK Innovation spokesman said the company decided to not keep the deal with Australian Mines valid as the Australian firm did not meet prerequisites such as submitting a legally binding finance document by the Sept. 30 deadline.
In August, SK Innovation had agreed to purchase 100% of the battery-grade cobalt sulphate and nickel sulphate produced from Australian Mines’ flagship Sconi Cobalt-Nickel-Scandium Project in North Queensland.
The Australian company said on Friday it would continue discussions for offtake agreements with other interested parties, while also working towards securing funding to develop the Sconi project.