POSCO Future M secures 1.8 trillion won battery material deal amid EV slowdown

This photo shows a POSCO company flag. Courtesy of POSCO

SEOUL, September 12 (AJP) — POSCO Future M, a battery materials subsidiary of steelmaker POSCO, has secured a contract worth about 1.8 trillion won ($1.3 billion) to supply high-nickel cathode materials for electric vehicle (EV) batteries.

The company announced the deal in a regulatory filing on Wednesday but did not disclose the name of the customer or other details, citing a confidentiality agreement.

The contract value represents about 38.8 percent of POSCO Future M's total revenue for the previous year.

The deal comes at a time when the EV industry is experiencing a temporary slowdown in demand, often referred to as the "chasm" in the technology adoption lifecycle. POSCO Future M’s second-quarter sales fell below 1 trillion won for the first time in six quarters.