POSCO Future M Signs Long-Term LFP Cathode Supply Deal Worth KRW 6 Trillion with Samsung SDI

Supply Volume Increased from August Agreement

POSCO Future M has agreed to supply Samsung SDI with approximately KRW 6 trillion worth of lithium iron phosphate (LFP) cathode materials on a long-term basis.

POSCO Future M announced on October 6 that it had signed a long-term supply contract with Samsung SDI for battery materials, including LFP cathode materials. In August, the company previously agreed to supply Samsung SDI with 19 metric tons of LFP cathode materials from next year through 2032. With this contract, the supply quantity has been more than doubled as they entered into a definitive agreement.

Yoon Taeil, Head of Energy Materials Marketing at POSCO Future M, (left) is taking a commemorative photo with Lee Kwangsoo, Head of Purchasing Center at Samsung SDI, after signing a long-term supply contract for battery materials, including LFP cathode materials. Photo by Yonhap News Agency

The two companies amended their previous 2023 agreement to expand the supplied items from a single product—nickel cobalt aluminum (NCA) cathode materials—to include LFP cathode materials as well. Looking ahead, they plan to further broaden their supply cooperation to include lithium manganese oxide (LMO) cathode materials and synthetic graphite anode materials.

Through this business, POSCO Future M has now established itself as a core supplier of secondary battery materials to Samsung SDI. Samsung SDI, in turn, is enhancing its supply chain stability by securing both cathode and anode materials from Non-PFE (non-foreign entity of concern) sources, which enables the company to comply with U.S. FEOC regulations aimed at reducing dependence on Chinese entities.

Going forward, both companies plan to leverage their strategic partnership to establish a K-battery value chain, aiming to boost their competitiveness not only in the electric vehicle market but also in the energy storage system (ESS) sector.

This content was produced with the assistance of AI translation services.