Signs a major long-term contract, sharply increasing the volume to more than double what was previously agreed
Expands supply from a single ternary product to LFP and LMO, as well as synthetic graphite anode materials… completing a “one-stop supply system” for secondary battery materials
Builds a K-battery value chain through cooperation between the two companies… enhancing global competitiveness
POSCO Future M (CEO EOM Gi Chen) will supply Samsung SDI with KRW 6 trillion worth of LFP (lithium iron phosphate) cathode materials on a long-term basis.
On the 6th, POSCO Future M signed a long-term supply contract for battery materials with Samsung SDI to enable the “one-stop supply” of secondary battery materials, including LFP cathode materials.
The formal contract sharply increases the volume to more than double what was agreed with Samsung SDI in August, when the two companies reached a large-scale, long-term supply agreement for 190,000 tons of LFP cathode materials from 2027 through 2032.
The contract signed with Samsung SDI that day is a comprehensive agreement that brings together the individual contracts for the main products POSCO Future M supplies, and is expected to serve as a foundation for managing product-specific contracts more systematically going forward. As the first integrated supply agreement between POSCO Future M and Samsung SDI, it is also anticipated to be a turning point that solidifies the two companies’ strategic partnership.
Under this contract, the two companies agreed to amend the supply contract POSCO Future M signed with Samsung SDI in 2023, expanding the products covered from NCA alone to include LFP cathode materials. They also agreed to broaden their future cooperation to include LMO (lithium manganese oxide) cathode materials and synthetic graphite anode materials, among others.
POSCO Future M expects its supply volume to rise by approximately 45% from existing levels as its supply lineup broadens from mainly NCA to LFP, LMO, and synthetic graphite, making the company a key supplier of secondary battery materials to Samsung SDI.
Going forward, Samsung SDI will be able to secure non-PFE (non-prohibited foreign entity) cathode and anode materials and stabilize its materials procurement supply chain. POSCO Future M will be able to use the confirmed volumes to improve utilization rates and to plan future facility expansion and raw material procurement with greater precision, raising not only its investment efficiency but also its business predictability.
By building a K-battery value chain through their strategic partnership, the two companies can enhance their global competitiveness in the in the ESS market as well as the electric vehicle market.
POSCO Future M is the only company in Korea with a materials portfolio that enables it to supply natural and synthetic graphite anode materials, as well as a wide range of cathode materials, including ternary materials (such as NCA and NCM), LFP, and LMO, among others. The company continues to discuss supplying cathode and anode materials to major battery makers and automakers, building on this portfolio to navigate global trade regulations.
In July, POSCO Group announced its future growth strategy, presenting a vision to build a Triple-Core system and grow into a “national supplier of critical resources.” The system spans industrial resources (steel), strategic resources (such as lithium, cathode and anode materials, and rare earths), and energy resources (LNG and renewable energy).
POSCO Future M aims to continue strengthening the competitiveness of its cathode and anode materials business by leveraging POSCO Group’s value chain, including lithium salt lakes and graphite mines, and to further solidify its position as a core strategic resources company within the group.
▲ On the 6th, POSCO Future M and Samsung SDI met at Samsung SDI’s Dongtan site to sign a long-term supply contract for battery materials to enable the “one-stop supply” of secondary battery materials, including LFP cathode materials. (From left) YOON Tae Il, Head of the Energy Materials Marketing Division at POSCO Future M, and LEE Kwang Soo, Head of the Purchasing Center at Samsung SDI