South Korean electric vehicle battery components manufacturer EcoPro BM said it had signed a KRW44trn (US$34bn) contract to supply cathodes to Samsung SDI for five years starting from 2024.
The deal, announced in a regulatory filing last week, significantly strengthens the supply chain deal between the two companies with EcoPro committing to supply lithium nickel cobalt aluminium oxide (NCA) cathodes until the end of 2028.
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The first batch will be shipped from a plant in Pohang, 250km south of Seoul.
The two companies established a joint venture in 2020 called EcoPro EM which supplies NCA cathodes to Samsung SDI’s overseas battery plants.
Samsung SDI has battery supply contracts with automakers including BMW, Ford, GM and Hyundai-Kia.
EcoPro is also investing KRW383bn (US$219m) to build a new cathode plant in Debrecen, Hungary to supply battery plants in Europe.
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By GlobalData
