POSCO Future M has signed a long-term supply contract with Samsung SDI for lithium iron phosphate (LFP) cathode materials. According to the company, the contract is worth six trillion South Korean won, or approximately $4.5 billion. Signed on October 6, 2026, the agreement also expands cooperation on other battery materials.
The agreed LFP volume is more than double the amount planned in August. At that time, the companies agreed on 190,000 metric tons for the period from 2027 through 2032. POSCO Future M does not disclose the exact revised volume in its announcement.
Supply Agreement Expands Beyond NCA
The new contract combines existing individual agreements for the main products supplied. It also expands the supply contract signed in 2023 to cover LFP alongside NCA cathode materials.
The companies also plan to cooperate on lithium manganese oxide (LMO) cathode materials and synthetic graphite anode materials. POSCO Future M expects the broader product range to increase its overall supply volume by approximately 45% from existing levels.
Samsung SDI Seeks to Secure Material Supplies
Through the partnership, Samsung SDI aims to secure cathode and anode materials from sources not classified as prohibited foreign entities. POSCO Future M refers to these materials as non-PFE.
For POSCO Future M, the committed volumes are expected to improve production capacity utilization and planning. This includes future facility expansions and raw material procurement.
