[DigitalToday reporter Seok Dae-geon (석대건)] Posco Future M is expanding the scope of its battery materials cooperation with LG Energy Solution. Posco Future M said on Thursday it signed a “future cooperation” memorandum of understanding with LG Energy Solution. The two companies agreed to strengthen a cooperative framework to jointly respond to the electric vehicle and energy storage system markets and changes in the global trade environment.

The scope of the cooperation includes LFP cathode materials that use lithium, phosphate and iron, and synthetic graphite anode materials. It also includes supply and technology development cooperation for next-generation products such as ultra high-nickel cathode materials that maximize nickel content, sodium-ion batteries and silicon anode materials. The two companies plan to diversify cathode and anode products and specify a supply roadmap to sign a formal contract within the year.

Under the agreement, Posco Future M plans to supply a total of 720,000 tonnes of cathode and anode materials over seven years from 2027 to 2033. For NCM cathode materials, an existing supply item, it will increase over the medium to long term the use of recovered metals extracted from used batteries. As a step to boost cost competitiveness, it plans to broaden cooperation targets to include LFP cathode materials, for which demand has surged due to expansion of AI data centres and increased sales of entry-level electric vehicles.

LFP cathode materials will be produced by converting a high-nickel ternary cathode production line at the Pohang plant. Posco Future M will push ahead with the conversion work so it can begin full-scale supply to LG Energy Solution from early next year. It also plans to develop a new process using Argentine salt-lake lithium held by the Posco Group to supply next-generation LFP cathode materials with improved cost competitiveness and quality.

Demand for synthetic graphite anode materials has been steadily rising because they are advantageous for fast-charging performance and longer lifespan. Posco Future M will produce the anode materials in South Korea and Vietnam and supply them to LG Energy Solution.

The two companies will also cooperate on technology development and supply of materials for sodium-ion batteries, ultra high-nickel cathode materials and silicon anode materials. They also agreed to seek joint response measures if supply chain issues arise, such as the introduction of U.S. prohibited foreign entity requirements or the announcement of the European Industry Acceleration Act.

The Posco Group presented in July a vision to build a “triple core” system spanning industrial resources, strategic resources and energy resources and leap to become a “national representative core resource supplier”. Posco Future M plans to strengthen competitiveness in its cathode and anode materials business based on the group’s value chain, including lithium salt lakes and graphite mines, and cement its position as a strategic resources key company.