POSCO Future M has signed a supply agreement with SK On for LFP cathode material worth around KRW 1.1 trillion, or approximately $800 million. The contract runs from 2027 through 2029 and may be extended by two years by mutual agreement.
For POSCO Future M, this is its first agreement to supply cathode material to SK On. The company already supplies anode material to the battery manufacturer. According to POSCO Future M, it now supplies cathode and anode materials to all three major Korean battery makers.
In August, the company announced another long-term agreement to supply 190,000 metric tons of LFP cathode material to a Korean battery manufacturer.
POSCO Future M Expands LFP Production in Pohang
Compared with NCM and NCA cells, LFP batteries generally offer lower energy density but are considered less expensive and longer-lasting. POSCO Future M points to growing demand from stationary energy storage systems and lower-cost electric vehicles.
The company is therefore expanding a product portfolio that has so far focused primarily on NCM and NCA materials. Parts of its high-nickel cathode material production lines at the Pohang plant have already been converted to LFP production. Commercial-scale deliveries are scheduled to begin by the end of 2026.
Additional production lines are expected to be converted depending on further orders. POSCO Future M also plans to use lithium sourced from salt lakes in Argentina. According to the company, this is intended to improve cost competitiveness and product quality.
