Posco Future M and LG Energy Solution have signed a memorandum of understanding to expand their partnership in the battery materials sector. Under the seven-year agreement, Posco Future M will supply 720 000 tonnes of cathode and anode materials to LGES between 2027 and 2033.
The supply deal encompasses LFP cathode materials, synthetic graphite, ultra-high-nickel cathodes, and components for sodium-ion and silicon-anode batteries. Posco Future M plans to convert existing production lines at its Pohang facility to LFP, with initial supplies to LGES scheduled for early 2027.
Synthetic graphite for the partnership will be manufactured in South Korea and Vietnam. Posco Future M intends to integrate lithium sourced from its own operations in Argentina to optimize costs and secure its internal supply chain. The companies also plan to increase the use of recycled metals from used batteries.
The collaboration aims to address regulatory and geopolitical challenges in the US and European markets. This agreement follows a period in 2024 when both companies delayed certain investments due to cooling demand for electric vehicles, signaling a shift toward more cost-effective battery chemistries.
