POSCO Future M signs 7‑year MOU to supply 720,000 tons of cathode and anode materials to LG Energy Solution
POSCO Future M and LG Energy Solution signed a memorandum of understanding to deliver a combined 720,000 tons of battery cathode and anode materials over seven years. The agreement adds lithium‑iron‑phosphate (LFP) cathodes and synthetic/artificial graphite anodes to the existing NCM supply. The deal is valued at roughly 10 trillion won (about $7.5 billion) and includes plans to convert a high‑nickel production line at Pohang to LFP and to sign a formal contract by year‑end.
Why it matters
The long‑term supply contract secures a multi‑year revenue stream of about 10 trillion won for POSCO Future M, supporting its investment plan for line conversion and new‑process development. LG Energy Solution gains volume certainty for LFP and synthetic graphite, helping it lock in cost‑stable inputs for EV and ESS batteries.
Key facts
- 1The MOU covers a total volume of 720,000 tons of cathode and anode materials combined. mk.co.kr
- 2The supply period is seven years, from 2027 through 2033. finance.biggo.com
- 3The total value of the volume is estimated at about 10 trillion won (approximately $7.5 billion). finance.biggo.com
- 4The agreement adds LFP cathode material and synthetic (artificial) graphite anode material to the product mix. mk.co.kr
- 5POSCO Future M will convert a high‑nickel ternary cathode line at its Pohang plant into an LFP line, with full‑scale LFP supply expected early next year. mk.co.kr
- 6The parties aim to finalize a definitive supply contract by the end of the year. mk.co.kr
Open questions
- Materials 1 states supply starts in 2025, while materials 2‑8 state the period is 2027‑2033.
Summary written by AlphAI AI Desk from 8 of 9 sources. Not investment advice. Figures are as stated by the linked sources.