Long-term cathode material supply through 2032 Joining forces with domestic firms to counter China
Yoon Tae-il, Head of Energy Materials Marketing at POSCO Future M (left), and Lee Kwang-soo, Head of Purchasing Center at Samsung SDI, pose for a commemorative photo on the 6th. 2026.10.06 Provided by POSCO Future M
POSCO Future M has signed a long-term cathode materials supply contract worth KRW 6 trillion with Samsung SDI for lithium iron phosphate (LFP) cathodes.
POSCO Future M announced on the 6th that it has signed a contract with Samsung SDI to supply LFP cathode materials from 2027 to 2032. The volume has been more than doubled from the previously agreed 190,000 tons in August. In addition to nickel cobalt aluminum (NCA) cathode materials, which are mainly used in high-performance electric vehicles, the two companies will supply LFP cathode materials and plan to expand the scope of cooperation to include lithium manganese oxide (LMO) cathode materials, which have strong price competitiveness, in the future.
With this contract, Samsung SDI will also strengthen its “Non-PFE” materials supply chain. PFE refers to a “Prohibited Foreign Entity” designated by the U.S. government, meaning companies linked to certain countries such as China. Non-PFE indicates materials produced in a supply chain unrelated to such companies. Securing this makes it easier to respond to U.S. regulations on Chinese battery materials while meeting the requirements for battery production, sales, and tax benefits in the United States.
Based on the confirmed volumes, POSCO Future M plans to increase plant utilization rates and enhance the stability of capacity expansion and raw material procurement. Last month, POSCO Future M also signed an LFP cathode materials supply contract worth about KRW 110 billion with SK On. This effectively means the company is steadily expanding cooperation with domestic battery makers in the LFP materials market, which has been led by Chinese companies.
POSCO Future M is the only company in Korea that has built a materials portfolio capable of supplying a full range of cathode materials—including ternary (such as NCA and NCM), LFP, and LMO—as well as natural and artificial graphite anode materials. A POSCO Future M official stated, “We will strengthen the competitiveness of our cathode and anode materials business based on the POSCO Group’s internal value chain, including lithium brine and graphite mines.”
Byeon Jong-guk
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
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