SK Innovation Co. signed a licensing agreement with Texas-based engineering contractor KBR Inc. for the Korean company’s waste battery metal recycling technology, as both firms look to capitalize on the growing demand for sustainable battery materials.
The memorandum of understanding was announced Tuesday at the Fastmarkets European Battery Raw Materials Conference in Lisbon, with KBR gaining rights to commercialize SK Innovation’s proprietary lithium recovery process globally. Financial terms weren’t disclosed, though SK Innovation will receive royalty payments from the arrangement.
The Korean energy company’s technology extracts lithium hydroxide directly from used batteries through what it calls a “fluidized hydrogen reduction reaction,” bypassing conventional methods that recover lithium carbonate. SK Innovation claims higher purity levels and improved environmental performance compared to traditional recycling approaches.
KBR, which generated $7.7 billion in revenue last year, brings crystallization technology that the companies say will enhance the lithium purification process. The Houston-based firm has been expanding its sustainable technology portfolio as industries seek alternatives to raw material mining.
While SK Innovation has operated a demonstration facility in Daejeon since 2021, commercial viability remains unclear. The company previously partnered with SungEel HiTech for recycling operations planned to start in 2025, though widespread adoption faces hurdles from limited waste battery supplies and infrastructure gaps in key markets.
