poscofuturem

- Speeds up high-nickel → LFP conversion of Pohang plant production lines… Will supply LFP cathode materials to LG Energy Solution in a timely manner from early next year

- Strengthens competitiveness by collaborating to develop future battery materials, such as materials for sodium-ion batteries, and responding jointly to global supply chain regulations

POSCO Future M is expanding its cooperation with LG Energy Solution to include LFP (lithium iron phosphate) cathode materials, synthetic graphite anode materials, and more.

On the 30th, POSCO Future M signed a Future Cooperation MOU with LG Energy Solution and agreed to strengthen the two companies’ cooperation framework to jointly respond to the rapidly changing EV and ESS markets and global trade environment.

The Future Cooperation MOU covers cooperation on the supply and technology development of LFP and synthetic graphite anode materials, which have recently become a focus of the secondary battery industry. It also extends this cooperation to ultra-high-nickel cathode materials and next-generation products such as sodium-ion batteries and silicon anode materials, among other areas. To respond to market changes, the two companies plan to work out how they will diversify their cathode and anode products and lay out a supply roadmap, then sign a formal contract within the year.

Under the agreement reached that day, POSCO Future M is expected to supply a total of 720,000 tons of cathode and anode materials to LG Energy Solution over seven years, from 2027 through 2033.

For the ternary NCM (nickel-cobalt-manganese) cathode materials POSCO Future M has been supplying to LG Energy Solution, the two companies agreed to pursue ways to further boost cost competitiveness by expanding the use of metals recovered from spent batteries over the mid to long term. They will also extend their cooperation to LFP cathode materials, demand for which has recently surged, driven by the expansion of AI data centers and growing sales of affordable EVs.

First, POSCO Future M plans to quickly convert the high-nickel ternary cathode material production lines at its Pohang cathode material plant into LFP lines and begin full-scale supply of LFP cathode materials to LG Energy Solution from early next year.

Going forward, the company plans to supply next-generation LFP cathode materials with further improved cost competitiveness and quality by developing a new process that uses POSCO Group’s lithium from salt lakes in Argentina.

In addition, POSCO Future M will produce synthetic graphite anode materials in Korea and Vietnam and supply them to LG Energy Solution. Demand for these materials has been rising steadily because they are well suited to improving batteries’ fast-charging performance and lifespan.

The two companies also agreed to cooperate on technology development and supply for future battery materials, such as materials for sodium-ion batteries (SIBs), ultra-high-nickel cathode materials, and silicon anode materials. They also agreed to stay ahead of changes in the trade environment, including by exploring joint measures when they anticipate or face global supply chain issues, such as the introduction of PFE (prohibited foreign entity) requirements in the US and the announcement of the IAA (Industrial Accelerator Act) in Europe.

In July, POSCO Group announced its future growth strategy, presenting a vision to build a Triple-Core system and grow into a “national supplier of critical resources.” The system spans industrial resources (steel), strategic resources (such as lithium, cathode and anode materials, and rare earths), and energy resources (LNG and renewable energy).

POSCO Future M plans to keep strengthening the competitiveness of its cathode and anode materials business based on POSCO Group’s in-house value chain, such as lithium salt lakes and graphite mines, and further solidify its position as a core strategic resources company within the group.