South Korean electric vehicle (EV) battery materials producer Posco Future M announced it has secured its largest-ever supply contract for battery anode materials, worth KRW 671 billion (US$ 472 million), with a global vehicle manufacturer. The company, part of the Posco Group, released the news in a recent regulatory filing, but did not disclose the name of the client for confidentiality reasons.
The contract involves the supply of natural graphite anode materials over a four-year period starting in October 2027, with the option of extending the contract through to 2037 by mutual agreement, which could raise the value of the deal to around KRW 1.7 trillion.
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Recent reports have suggested that global automakers are increasingly opting to secure supplies of battery materials directly from producers, a job normally carried out by battery cell manufacturers, due to supply chain glitches and US policies aimed at cutting its dependence on Chinese materials. Analysts noted that US companies, including Tesla, General Motors, and Ford, have entered into direct supply agreements and have also formed joint ventures to secure upstream cathode and anode materials for their EV batteries.
South Korean battery materials producers such as Posco are also establishing alternative supply chains to reduce their dependence on Chinese battery materials. Posco announced it aims to phase out the use of China-sourced spherical graphite intermediate materials for battery anodes at its Sejong plant in South Korea by 2027.
