POSCO Future M signs 21 trillion KRW battery material deal with Samsung SDI

POSCO Future M has signed a long-term supply agreement with Samsung SDI to provide battery materials, including Lithium Iron Phosphate (LFP) cathode materials, through 2032. The total value of the expanded contract has reached approximately 21.25 trillion KRW.

The agreement expands upon a 2023 contract that focused solely on Nickel-Cobalt-Aluminum (NCA) cathode materials. Under the new terms, the LFP portion accounts for roughly 6.05 trillion KRW, while the NCA portion remains at approximately 15.2 trillion KRW. The total supply volume has increased by about 45% compared to previous agreements, with the LFP supply volume specifically more than doubling to over 380,000 tons.

Both companies intend to further broaden their cooperation to include Lithium Manganese Oxide (LMO) cathode materials and synthetic graphite anode materials. This partnership aims to secure a ‘Non-PFE’ (Non-Prohibited Foreign Entity) supply chain to mitigate risks associated with international battery regulations, such as those in the United States, by reducing dependence on specific foreign materials.