POSCO Group announced on the 19th that it will cooperate with Chinese cathode materials company Longbai Group across the secondary battery materials business, including the supply of battery-grade lithium and recycling of spent batteries.

On the same day, POSCO Holdings signed a strategic business agreement with Longbai Group at POSCO Center in Seoul. The two companies plan to cooperate across the entire secondary battery materials value chain, from the supply of lithium produced from ore and brine to the recycling of lithium recovered from spent batteries.

Longbai Group is a Chinese company that mainly produces high-nickel cathode materials. Recently, it has been expanding its product portfolio beyond ternary cathode materials to include lithium iron phosphate (LFP), lithium manganese iron phosphate (LMFP), and sodium-ion batteries.

Under this agreement, POSCO Group will seek ways to supply battery-grade lithium produced domestically and overseas to Longbai Group. This includes lithium produced by POSCO Pilbara Lithium Solution at the Yulchon Industrial Complex in South Jeolla Province using Australian ore, brine-based lithium from POSCO Argentina, and lithium recovered from spent batteries by POSCO HY Clean Metal.

As a first step, ore-based battery-grade lithium hydroxide produced by POSCO Pilbara Lithium Solution is scheduled to complete Longbai Group’s quality certification procedures by the fourth quarter of this year. Once quality certification is completed, the companies will hold discussions so that this can lead to mass-production supply going forward.

The two sides will also expand cooperation in the field of spent battery recycling. POSCO HY Clean Metal is currently supplying nickel, cobalt, manganese, and other materials to Longbai Group’s plant in China and to its domestic precursor subsidiary EMT. Based on existing transactions, the companies also plan to establish a resource-circulation system in which raw materials recovered from spent batteries are reused in battery materials production.

POSCO Group is expanding its lithium business by supplying lithium produced through different methods, including Australian ore, Argentine brine, and spent battery recycling, thereby building a value chain that extends from raw material procurement to production of battery-grade materials.

If this cooperation leads to actual supply, POSCO Group will provide battery-grade lithium to China, the world’s largest producer of secondary battery materials. The company also expects to broaden its lithium sales channels by securing Chinese cathode materials manufacturers as new customers.

Since Chairman Jang In-hwa took office, POSCO Group has been focusing on investments centered on key raw materials such as lithium in the secondary battery materials business, while at the same time stepping up efforts to secure new customers in overseas markets, including China.

The scope of cooperation with Longbai Group is also planned to be expanded. Starting with battery-grade lithium and spent battery recycling, the two companies are reviewing measures to broaden their cooperation to include LFP materials and secondary battery materials for energy storage systems (ESS).

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