South Korea’s POSCO Holdings announced it had signed a broad based agreement with Honda Motor to collaborate on materials sourcing for future electric vehicles (EVs).
Posco Holdings is South Korea’s largest steelmaker and has been investing heavily to expand production and processing of key materials for EV batteries in the last few years.
The two companies signed a memorandum of understanding (MoU) to expand sourcing including cathode and anode materials, as well as low carbon steel and materials recycling to help the automaker make the transition to low carbon emissions.
In particular, the two companies agreed to focus collaboration on new areas:
- Use of low-carbon, ultra-high tensile steel sheet to help reduce vehicle weight;
- Use of electric steel sheet in the mass production of EV drive motors;
- Cooperation in the procurement of key battery materials such as cathode and anode materials;
- Collaboration in expanding the procurement and use of recycled materials, including the establishment of a closed-loop recycling system to reclaim used battery materials.
Posco Holdings chairman Choi Jeong-Woo said in a statement: “Honda has been our strategic partner in the steel business and we are pleased to expand our cooperative system into the field of battery materials. We are expecting that the Posco Group’s full value chain for battery materials, which includes elemental materials such as lithium and nickel, cathode and anode materials, future battery materials, and recycling, will be of great help to Honda’s strategy to expand its EV business”.
Honda Motor CEO Toshihiro Mibe added: “We have announced our target to [achieve] carbon neutrality for all [our] products and corporate activities by 2050. We believe that this expansion of our partnership with Posco, which has extensive expertise in the areas of battery materials, recycling, steel sheet and electric steel sheet, will help us further accelerate our electrification strategies.”