Loop Industries and SK Geo Centric (SKGC) have mutually agreed to dissolve their joint venture agreement. This agreement was originally established to construct and operate an Infinite Loop manufacturing facility in South Korea.
The decision to terminate the JV reflects a strategic pivot by Loop Industries. The company has indicated a preference for an asset-light licensing arrangement in high-cost manufacturing countries like Korea, rather than direct capital deployment.
This experience has reinforced Loop's commitment to requiring significant upfront payments for future technology licenses. The company is now focusing its direct investment model on low-cost regions such as India, while pursuing licensing for higher-cost markets.
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