POSCO Future M is expanding its collaboration with LG Energy Solution to include LFP (lithium iron phosphate) cathode materials and synthetic graphite anode materials.
On October 30, POSCO Future M announced that it has signed a 'Future Cooperation MOU' with LG Energy Solution to strengthen their partnership in response to the rapidly changing electric vehicle (EV) and energy storage system (ESS) markets and global trade environment.
The MOU includes cooperation on next-generation products such as LFP and synthetic graphite anode materials, ultra-high nickel cathode materials, sodium-ion batteries, and silicon anode materials. The two companies plan to finalize a formal contract by the end of the year, detailing a diversified product roadmap for both anode and cathode materials to respond to market changes.
Under this agreement, POSCO Future M aims to supply a total of 720,000 tons of anode and cathode materials to LG Energy Solution over seven years, from 2027 to 2033.
Previously, POSCO Future M supplied nickel-cobalt-manganese (NCM) cathode materials to LG Energy Solution and plans to enhance cost competitiveness by increasing the use of recovered metals extracted from used batteries in the medium to long term.
The expansion of the collaboration to include LFP cathode materials comes as demand surges due to recent increases in AI data center expansions and sales of affordable electric vehicles.
Initially, POSCO Future M will expedite the conversion of its Pohang cathode plant's ultra-high nickel cathode production line to an LFP cathode production line, with plans to begin supplying LFP cathode materials to LG Energy Solution in early 2024.
Additionally, POSCO Future M will produce synthetic graphite anode materials in South Korea and Vietnam to supply to LG Energy Solution, as demand for these materials continues to grow due to their advantages in battery fast-charging performance and lifespan.
The two companies also agreed to collaborate on technology development and supply of materials for sodium-ion batteries (SIB), ultra-high nickel cathode materials, and silicon anode materials. They plan to proactively address changes in the trade environment, including potential issues related to the introduction of U.S. PFE (Prohibition of Foreign Entities) requirements and the announcement of the European IAA (Industrial Acceleration Act).
POSCO Future M aims to continuously strengthen its competitiveness in the anode and cathode materials business based on the value chain within the POSCO Group, including lithium brine and graphite mines, solidifying its position as a core company for strategic resources within the group.
Meanwhile, POSCO Future M signed a supply contract for LFP cathode materials worth approximately 1.1 trillion won with SK On on September 22, and on October 6, it entered into a long-term supply contract for LFP cathode materials worth 6 trillion won with Samsung SDI. With this collaboration with LG Energy Solution, POSCO Future M is accelerating the expansion of its supply of anode and cathode materials to the three major domestic battery manufacturers.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.