Posco Future M Company, the battery materials unit of South Korea’s Posco Holdings, has signed a KRW 6 trillion (US$ 4.5 billion) deal to supply lithium iron phosphate (LFP) cathode materials to local battery manufacturer Samsung SDI Company, as the company continues to strengthen its position in the global battery supply chain. Posco Future M supplies cathode and anode materials to all three major South Korean battery manufacturers, including SK On Company and LG Energy Solution,
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Under this latest agreement with Samsung SDI, Posco Future M will supply close to 400,000 tons of LFP cathode active material to Samsung SDI over a five-year period, between 2027 and 2032. The company confirmed that the contracted amount is more than double the 190,000 tons of LFP cathode materials covered by an earlier agreement signed in August.
The two companies said that they have consolidated all individual supply contracts into a master agreement, further strengthening a partnership that began in 2023 with the supply of NCA (nickel cobalt aluminum) cathode materials. The new orders will help Posco Future M improve its capacity utilization and strengthen its raw materials sourcing.
Posco Future M and Samsung SDI plan to expand their collaboration into lithium manganese oxide (LMO) cathodes and synthetic graphite anodes, which would make Posco Future M the only South Korean producer of NCA, LFP and LMO cathodes, which it says will help automakers and battery manufacturers adapt to changing sourcing requirements.
