Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
POSCO Future M wins $23 billion order for cathode materials from LGES
A rendered image of POSCO Future M's cathode materials factory, which is under construction in Pohang, North Gyeongsang Province / Courtesy of POSCO Future M
By Park Jae-hyuk
By Park Jae-hyuk
POSCO Future M signed a contract with LG Energy Solution (LGES) on Wednesday to supply $23 billion worth of cathode materials to the electric vehicle (EV) battery manufacturer over the next seven years.
The latest contract came three months after POSCO Future M signed another major deal to supply 40 trillion won ($30 billion) worth of cathode materials to Samsung SDI over the next 10 years.
As a result, the POSCO Group subsidiary has been able to win a combined 92 trillion won order for its cathode materials so far.
Since POSCO Future M entered the battery materials business in 2011, it has maintained close ties with LGES, starting to supply its cathode and anode materials to the battery maker in 2012.
In 2020, the two companies signed a 1.8 trillion won deal for the supply of cathode materials. Ultium Cells, the joint venture between LGES and General Motors, also asked POSCO Future M in 2022 to supply cathode materials worth 22 trillion won.
POSCO Future M said it has focused on R&D to diversify its product portfolios into high-nickel cathode materials, synthetic graphite and silicon anode materials, in line with the rapid growth of the EV market. The company has also sought to produce its products not only in Korea, but also in the U.S., China and Europe.
Based on such strategies, the chemical firm aims to increase the annual production capacity of cathode materials to 610,000 tons in 2030 from the current 105,000 tons. It also expects its annual anode materials production capacity to grow to 320,000 tons in 2030 ― from the current 82,000 tons.
“Our close ties with LGES enabled the growth of our battery materials business,” POSCO Future M CEO Kim Jun-hyung said.
POSCO Future M plans to announce its first-quarter earnings on Thursday.