POSCO Future M announced on October 6 that it had signed a long-term a - Shanghai Metals Market (SMM)
POSCO Future M signed a long-term deal with Samsung SDI to supply KRW 6 trillion worth of lithium iron phosphate cathode materials from 2027 to 2032, more than doubling the initial 190,000 tonnes agreed in August. The companies also expanded their cooperation to include LMO cathode and artificial graphite anode materials.
How this was made
The 30-second read
Why it matters
Both companies aim to capture growing demand for LFP batteries in EVs, positioning them competitively.
Market read
A multi‑year, multi‑trillion‑won supply deal that could materially affect earnings and market perception of both firms.
What to watch
Currency risk on KRW‑denominated contract and potential competition from other LFP suppliers.
Background
The agreement expands POSCO's existing partnership with Samsung SDI, which previously covered NCA cathodes.
Ticker impact
POSCO Future M signed a long‑term KRW 6 trillion supply agreement for LFP cathode materials with Samsung SDI, doubling the prior volume.
likely upward pressure as the market prices in higher future sales.
The deal adds significant volume and value, indicating stronger demand for POSCO's battery materials.
Market effects
Strengthens the battery materials supply chain, benefiting the EV and energy‑storage sectors.
Boosts South Korean battery‑materials exporters and may lift related indices.
Adds to global LFP supply confidence, supporting broader EV market growth.
Counterpoint
If LFP demand softens or pricing falls, the contract could become a cost burden.
Key entities
- CompanyPOSCO Future M
South Korean steel and materials producer.
- CompanySamsung SDI
South Korean battery manufacturer.
