Yoon Tae-il (left), head of the energy materials marketing division at Posco Future M, and Lee Kwang-soo, head of the procurement at Samsung SDI, pose for a photo after signing a long-term contract for battery materials at Samsung SDI’s Dongtan facility in Gyeonggi Province on Tuesday. (Posco Future M)
Yoon Tae-il (left), head of the energy materials marketing division at Posco Future M, and Lee Kwang-soo, head of the procurement at Samsung SDI, pose for a photo after signing a long-term contract for battery materials at Samsung SDI’s Dongtan facility in Gyeonggi Province on Tuesday. (Posco Future M)

Posco Future M has signed a 6 trillion won ($4.48 billion) deal to supply Samsung SDI with lithium iron phosphate battery materials, expanding their partnership as the battery industry seeks alternatives to Chinese suppliers.

The agreement covers LFP cathode active material deliveries from 2027 through 2032. Posco Future M said the contracted volume is more than double the 190,000 tons covered by an earlier agreement signed in August.

The companies have also consolidated individual supply contracts into a master agreement, broadening a partnership that began with a nickel-cobalt-aluminum cathode supply deal in 2023. They plan to extend cooperation to lithium manganese oxide cathodes and synthetic graphite anodes.

Posco Future M expects its total projected supply volume to Samsung SDI to rise by about 45 percent as the partnership expands beyond NCA materials.

The secured orders will help Posco Future M improve plant utilization and coordinate capacity investments and raw material purchases. For Samsung SDI, the agreement offers a more diversified supply base and materials intended to meet US restrictions on sourcing.

Posco Future M said it was Korea’s only supplier with production capabilities spanning NCA, LFP and LMO cathodes, as well as natural and synthetic graphite anodes. It aims to use that range to help automakers and battery manufacturers adapt to changing sourcing requirements.

The deal also supports Posco Group’s strategy to build on its steel, strategic resources and energy businesses. Investments in lithium salt lakes and graphite mines are intended to connect raw material supplies with battery material production.


hyejin2@heraldcorp.com