Posco Future M and LG Energy Solution sign 720,000-tonne battery materials deal

Posco Future M and LG Energy Solution have signed a memorandum of understanding that will put 720,000 tonnes of cathode and anode materials on the move over seven years, from 2027 through 2033. The pair plan to lock the arrangement into a formal contract before the end of this year. Posco Future M has not said how the tonnage splits across the different material types.

LFP is the fastest-moving piece. Posco Future M will convert high-nickel cathode lines at its Pohang plant to LFP production and start supplying LGES from early 2027, with some lines already retrofitted. Further out, the company wants to plug in lithium from Posco Group's Argentine salt lakes, a move it says cuts costs and tightens its grip on its own supply chain.

Anode materials get a bigger role too. Synthetic graphite will be made in Korea and Vietnam and shipped to LGES, with Posco Future M pitching its fast-charging performance and lifespan as the edge. The MoU also covers joint development of sodium-ion battery materials, ultra-high-nickel cathodes and silicon anodes.

Existing NCM deliveries stay in the picture, and the two companies want to raise the share of metals recovered from used batteries over the medium term. Posco Future M says that boosts cost efficiency while closing the loop on material cycles. Both sides also plan to answer stricter supply chain rules in the US and Europe together.

The deal lands after a bruising stretch: in 2024, LG Energy Solution and Posco both pushed back and reprioritised battery investments as EV demand softened. This framework reads as a targeted bet on the chemistries and materials feeding cheaper electric cars, stationary storage and the next generation of cells rather than a return to across-the-board expansion.