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pulse.mk.co.krSEP 232 min read

Posco Future M signs lands $789mn LFP cathode deal with SK on

Posco Future M will supply $789mn worth of LFP cathode materials to SK on from 2027-2029, with a possible 2-year extension. This is the first cathode materials deal between the two companies. The agreement aims to strengthen non-Chinese LFP supply chains. LFP batteries are cheaper and have longer lifespans than ternary batteries, with growing demand in energy storage systems.

Original reporting
pulse.mk.co.kr
Published Sep 23, 2026, 5:30 AM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Sep 23, 2026, 9:25 AM UTC. Informational, not investment advice.
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Posco Future M signs lands $789mn LFP cathode deal with SK on — source image
Source · pulse.mk.co.kr
Decision brief

The 30-second read

Med
01

Why it matters

The deal expands Posco Future M's product portfolio and may improve its revenue outlook, while enhancing SK On's supply security.

02

Market read

A large, first‑time LFP cathode contract that could influence South Korean battery stocks and the broader EV supply chain.

03

What to watch

Potential cost overruns or supply chain disruptions could affect profitability of the deal.

Relevance 9/10Novelty 9/10Timing: today

Background

Posco Future M, the battery materials unit of Posco Group, announced a $789 million LFP cathode supply contract with SK On for 2027‑2029.

Market effects

Sector

Strengthens the LFP battery materials sector and may boost related battery manufacturers.

Regional

Positive for South Korean battery supply chain and related equities.

Global

Supports diversification away from Chinese LFP supply, relevant for global EV and storage markets.

Counterpoint

What could challenge this read

If demand for LFP slows, the contract could become a liability for Posco Future M.

Key entities

  • Company
    Posco Future M

    Battery materials subsidiary of Posco Group.

  • Company
    SK On

    Korean battery maker receiving LFP cathodes.

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