South Korea’s steel giant Posco Group said it would manufacture a key material for the lithium-ion batteries to be fitted to General Motors’ electric vehicles (EVs) produced in the US.
The group confirmed its Posco Chemical Company subsidiary would supply battery anodes to Ultium Cells, a joint venture between South Korea’s LG Energy Solution and General Motors which has been assigned to supply the batteries for the US automaker’s next generation EVs.
Ultium Cells is investing US$2.3bn in a new EV battery plant in Ohio, which is scheduled to be completed next year.
Posco Chemical mainly manufactures anodes using natural graphite, which provides high storage capacity, which it combines with a tougher artificial graphite structure to ensure longer battery life and rapid charging.
Last December Posco signed a deal to supply Ultium Cells with cathodes which is also a key material for EV batteries.
Posco has channeled significant resources to increase its exposure to the fast-growing EV sector, mainly by providing high-performance materials and components for lithium-ion batteries.