POSCO: Future M signs KRW 6 trillion LFP supply contract with Samsung SDI... Builds strategic partnership as key supplier of non-PFE materials

POSCO HOLDINGS completed the upstream process of its second brine lithium plant in Argentina, expanding its annual production capacity to 48,000 tons. The company plans to link this with a downstream process to produce 50,000 tons of lithium hydroxide by 2027. CEO CHANG In Hwa emphasized the strategic importance for Korea's resource development and supply chain stability.

POSCO Group announced plans to build a decarbonized industrial ecosystem based on 'Steel GX,' a K-GX signature project. The company will collaborate with the government to supply clean energy and create a low-carbon steel market. POSCO aims to construct a HyREX demonstration facility with a 300,000-ton annual capacity by 2028, expecting economic benefits and job creation. The project will initially focus on the Southeastern region and later expand to the Southwestern region.

Posco Future M signed a $4.5B deal with Samsung SDI to supply LFP cathode materials from 2027 to 2032, more than doubling a prior agreement. The company is converting production lines and building a new plant to meet demand. Korean battery firms are expanding in North America due to US restrictions on Chinese suppliers, which require increasing shares of non-Chinese materials for tax credits.

POSCO Holdings is forecasted to report a Q3 operating profit of ₩805.6 billion ($600.8 million), a 26.1% YoY increase, driven by steel business profitability. Lithium segment faces challenges from price declines and initial costs. The company is expanding lithium production capacity, aiming for 50,000 tons annually by 2025 and 100,000 tons by 2033, though the latter target has been delayed.

Posco Holdings completed its second lithium plant in Argentina, investing $954M. The plant adds 23,000 tons of annual lithium carbonate capacity, bringing the site's total to 48,000 tons. The company plans to expand downstream processing in South Korea, aiming for 100,000 tons of battery-grade lithium hydroxide by 2033.

Samsung SDI signed long-term deals with POSCO Future M for LFP cathode materials (190,000 tons, 2027-2032) and EcoPro BM for solid-state battery materials, aiming to secure supply chains for current and future markets. The moves target ESS and next-gen battery growth.