(Reuters) - Battery materials developer Australian Mines Ltd (AX:AUZ) said on Friday a cobalt and nickel supply agreement with South Korean battery maker SK Innovation (KS:096770) has been terminated.
Under initial terms agreed on in October, SK Innovation was required to issue a finance letter to Australian Mines which it has not done, leading to the agreement being automatically terminated, Australian Mines said.
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 company on Friday added it would continue discussions for off-take agreements with other interested parties, while also working toward securing funding to develop the Sconi project.