POSCO Future M has signed a long-term supply contract with Samsung SDI for LFP (lithium iron phosphate) cathode materials worth 6 trillion won.
On October 6, POSCO Future M and Samsung SDI finalized a comprehensive supply agreement for battery materials, including LFP cathode materials.
This contract significantly increases the previously agreed supply volume of LFP cathode materials from 190,000 tons for the period from 2027 to 2032, more than doubling the amount.
The agreement consolidates individual contracts for key products supplied by POSCO Future M into a single comprehensive agreement, laying the groundwork for more systematic management of item-specific contracts in the future.
Through this contract, POSCO Future M has expanded its supply agreement with Samsung SDI from a single NCA item to include LFP cathode materials. The companies also agreed to broaden their collaboration to include LMO (lithium manganese oxide) cathode materials and synthetic graphite anode materials.
With this expansion, POSCO Future M is expected to increase its supply volume by approximately 45% compared to previous levels, solidifying its position as a key supplier of battery materials for Samsung SDI.
Samsung SDI will now be able to secure non-prohibited foreign entity (Non-PFE) anode and cathode materials, enhancing the stability of its material procurement supply chain. POSCO Future M can improve its operational efficiency based on the confirmed supply volume and establish more precise plans for facility expansion and raw material procurement, thereby increasing investment efficiency and business predictability.
Meanwhile, POSCO Future M is also expanding its production capacity to target the LFP cathode materials market. The company plans to convert some production lines at its Pohang cathode plant for LFP production, aiming to commence mass production in the second half of this year. Additionally, a dedicated LFP cathode materials plant with an annual capacity of up to 50,000 tons is under construction in the Pohang Yeongilman 4 General Industrial Complex, with mass production targeted for 2027. Last month, POSCO Future M also signed a supply contract for LFP cathode materials worth 1.1 trillion won with SK On.
* This article has been translated by AI.
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