POSCO Future M to Supply LG Energy Solution with 720,000 Tons of Cathode and Anode Materials Over 7 Years

Expand Cooperation to Include LFP Cathode and Synthetic Graphite Anode Materials
Convert Pohang Production Line to LFP... Supply to Begin Early Next Year

POSCO Future M has agreed to supply LG Energy Solution with a total of 720,000 tons of cathode and anode materials over seven years, from 2027 through 2033. The partnership, which has focused on ternary cathode materials, is expanding to include lithium iron phosphate (LFP) cathode materials and synthetic graphite anode materials.

A view of POSCO Future M's cathode materials plant in Pohang, located in Yeongil Bay Industrial Complex 4. POSCO Future M

POSCO Future M said on Oct. 30 that it had signed a memorandum of understanding (MOU) on future cooperation with LG Energy Solution. The two companies plan to flesh out a materials supply roadmap and sign a formal contract by the end of this year to respond to changes in the electric vehicle and energy storage system (ESS) markets.

The key focus of the agreement is expanding the supply of LFP cathode materials. POSCO Future M plans to convert a high-nickel ternary cathode material production line at its Pohang cathode material plant into an LFP production line and begin supplying LFP cathode materials to LG Energy Solution in earnest early next year. The move is aimed at meeting rising ESS demand driven by the expansion of artificial intelligence (AI) data centers and growth in the affordable electric vehicle market.

Going forward, POSCO Future M plans to develop a new process using lithium from the POSCO Group's brine in Argentina to improve the cost competitiveness and quality of LFP cathode materials. It also plans to reduce costs by increasing the use of metals recovered from end-of-life batteries in the nickel-cobalt-manganese (NCM) cathode materials it already supplies.

The companies will also strengthen cooperation in anode materials. POSCO Future M will produce synthetic graphite anode materials in South Korea and Vietnam and supply them to LG Energy Solution.

The companies will also jointly develop next-generation battery materials. They agreed to cooperate on the development and supply of materials for sodium-ion batteries (SIBs), ultrahigh-nickel cathode materials and silicon anode materials. They also plan to jointly respond to global supply chain regulations, including U.S. rules related to Prohibited Foreign Entities (PFEs) and Europe's Industrial Acceleration Act (IAA).

Through the agreement, POSCO Future M aims to strengthen the competitiveness of its cathode and anode materials businesses by leveraging the group's value chain, including its lithium brine and graphite mines. It plans to expand its role as a key materials supplier under the group's "Triple Core" strategy, which focuses on steel, strategic resources and energy resources.

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